Background: Pomegranate is used in traditional medicine for its therapeutic properties. Objective: Evaluation of the effectiveness of pomegranate fresh juice and peel extract on diabetes mellitus. Material and Methods: Sixty adult male albino rats of local strain were distributed randomly into 6 equal groups: normal control group, control group received Pomegranate fresh juice (500 mg/kg body weight per rat orally), control group received Pomegranate peel extract (500 mg/kg body weight per rat orally), diabetic group received alloxan (140 mg/kg body weight intraperitoneally), diabetic group received Pomegranate fresh juice (500 mg/kg body weight per rat orally), and diabetic group received Pomegranate peel extract (500 mg /kg body weight per rat orally). Results: Oral administration of Pomegranate juice and peel extract to diabetic rats for 4 weeks significantly decreased serum levels of TC, TG, low density lipoproteins cholesterol (LDL-c), and liver enzymes when compared to the control group. Levels of high density lipoprotein cholesterol (HDL-c) and antioxidant enzymes significantly increased as compared to the control group. Histopathological examination of liver and pancreas of Pomegranate juice-treated groups showed amelioration of histological changes caused by high level of cholesterol in diabetic group. These results were more prominent by Pomegranate fresh juice than peel extract. Conclusion: Pomegranate has antioxidant and lipid lowering effects and improves the health of pancreatic islets of Langerhans in diabetic rats.