Oxidative stress has been discovered to be involved in the progression of diabetes mellitus (Lenzen, 2008). The antioxidant properties of virgin coconut oil (VCO) among others might have a beneficial effect in ameliorating the disease. This present study was aimed at determining the antioxidant property of VCO on alloxan induced diabetic rats. Twenty-four healthy male Sprague-Dawley rats weighing between 100-150g were divided into four groups of six rats each as follows: Control (C), Diabetes untreated (DUT), Diabetes treated with 7.5ml/kg VCO (DT7.5) and Diabetes treated with 10ml/kg VCO (DT10). An intraperitoneal injection of Alloxan (100mg/kg body weight) was used to induce type 1 diabetes. Virgin coconut oil extracted from the fresh coconut was administered orally once daily. All animals were treated for 4 weeks. The fasting blood glucose level was measured on day 0 (72 hours post alloxan injection) and on the 4th week. Oral glucose tolerance test was conducted on the 4th week. At the end of the experiment, animals were sacrificed by cervical dislocation and Serum samples were and an enzyme linked immunoassay (EIA) system was employed to determine insulin level. The liver was harvested and the reduced glutathione (GSH) content was determined using the method described by Van Dooran et al (1978). Malondialdehyde (MDA) was determined based on its interaction with thiobarbituric acid (TBA).The activity of the superoxide dismutase (SOD) enzyme was determined according to the method described by Sun and Zigman(1978). Values are means ± S.E.M., compared by ANOVA and Tukey’s post hoc test. The results shows that VCO significantly reduced the fasting blood glucose level in DT7.5 rats (132.4 ± 6.911) and DT10 rats (131.6 ± 12.2) compare with DUT rats ( 320.4 ± 22.99) and improved the oral glucose tolerance. Serum insulin was increased in DT10 rats. GSH activities was significantly increased P < 0.05 in DT7.5 (0.04 ± 0.008) and DT10 rats (0.39± 0.022) when compared to DUT rats (0.032 ± 0.004). CAT activities was also significantly increased P < 0.05 in DT7.5 (17.63 ± 0.61) and DT10 rats (30.88 ± 0.97) when compared to DUT rats ( 10.98± 0.6). SOD activities significantly increased P < 0.05 in DT7.5 (2.634± 0.04) and DT10 rats (2.258 ± 0.32) when compared to DUT rats ( 1.366± 0.05) while MDA was significantly reduced P <0.05 in DT7.5 ( 49.16± 0.5133) and DT10( 33.64± 0.4185) rats when compared to DUT rats( 99.93± 4.786). This study revealed that VCO has a hypoglycaemic action enhancing insulin secretion and also ameliorating oxidative stress induced in type I (alloxan-induced diabetic) male rats.