The high confidence that applying nanotechnology in medicine will convey major advances in the diagnosis and treatment of the disease prompted this technology to a variety of medical applications. The ability to use Gold nanoparticles for biological applications as anti-inflammatory has led to a great interest in studying and exploitation of their possible beneficial effects on biological systems and how to diminish its harmful effects. Therefore, this research aimed to detect the effect of gold nanoparticles (AuNPs) administration on glucose and insulin levels and its anti-inflammatory effect in rats. Design: A total number of 30 healthy adult male albino rats were used to study the effect of gold nanoparticles (10 nm size) through an intraperitoneal injection of 2.5 mg/kg b.w./day for 7 days on serum glucose, insulin, liver enzymes, creatinine, BUN and proinflammatory cytokines in Streptozotocin (STZ) induced diabetic rats. The rats were classified into 2 groups: Control group (Group I), STZ induced diabetic group (Group II) which is further subdivided into 2 groups, diabetic untreated control group (Group IIa) and diabetic AuNPs treated group (Group IIb). Results: This study results showed that all the parameters significantly increased in STZ induced diabetic group with a significant decrease in insulin level in comparison with the control group. On treatment with AuNPs, the mean values were significantly decreased for Serum glucose level and HOMA-IR (P<0.001, P<0.05 respectively), ALT, AST, ALP, Creatinine and BUN (P<0.001) with a significant decrease in TNF-α, IL-6 and CRP (P<0.001). However, all the parameters did not retain its normal level. Conclusion: Our results showed that AuNPs improved blood glucose level, liver enzymes and proinflammatory cytokines causing control of hyperglycemia, which therefore induce the possible role of AuNPs as a cost-effective therapeutic medication in the treatment of diabetes and its complications.