There is an increasing interest with rice bran due to its natural phytochemicals content such as phenolic acids and Vit E which have been reported as strong antioxidants. The purpose of this study was to produce and study the effect of supplementing Balady bread with rice bran on blood glucose and cholesterol levels in diabetic rats. Chemical composition shows that rice bran is good source of protein, minerals, dietary fiber and antioxidants such as phenolic acids and vitamin E. Balady bread was supplemented with 5%, 10%, 15% and 20% of rice bran. Supplementation of Balady bread with rice bran up to 15% increased dietary fibers, phenolic acids and vitamin E content of the bread without negative effects on sensory properties of produced bread. Balady bread Supplemented with 15% and 20% rice bran recorded the highest treating effect on serum glucose and cholesterol levels in diabetic rats. It reduced glucose and cholesterol levels by 40%and 18.4%, respectively, comparing with diabetic rats group (control +ve). The results ascertain the possibility of producing Balady bread supplemented with rice bran as a functional food with high nutritive values and technological qualities for diabetes and hypercholesterolemic people.