Pleurotus tuber-regium (P.T) is an edible mushroom with abundant polysaccharides that has been used in traditional medicine to treat diabetes mellitus. This study investigated  the hypoglycaemic potential and ameliorative activity of Pleurotus tuber-regium incorporated diet on diabetes induced dyslipidaemia. Thirty five (35) adult male rats were randomly assigned to seven groups; Normal control, diabetic control, obese control, obese diabetic control, 10% PT, 20% PT, and Drug control. Type II DM was induced by placing the animals on high fat diet and a single intraperitoneal injection of streptozotocin (50 mg/kg/BW). P.T was incorporated into the feed and given to the animals for two weeks daily after the confirmation of diabetes.Treatment of the obese diabetic rats with P.T supplemented diet caused a decrease in the blood glucose level compared to the control groups. Increased organo-somatic ratio of the kidney and heart were markedly (p<0.05) reduced following treatment (20% P.T). Furthermore, cholesterol, triglycerides, LDL-C and VLDL-C levels were reduced due to treatment accompanied by increased HDL-C in the liver. Histological evaluation of the liver, kidney, heart, and pancreas of the P.T treated groups were comparable to normal. Incorporation of P. tuber-regium in diets could be effective in reversing dyslipidemia in obese diabetic patients.