The purpose of this study was to examine the dietary significance of dried banana peels on serum sugar and cholesterol levels in rats with type 2 diabetes. Following the adaptation period, the study involved 35 albino rats of the Sprague-Dawley strain, randomly divided into two main groups. was maintained on a basal diet as a negative control (-ve). The remaining animals (n = 28 rats) were injected subcutaneously with a single dose of streptozotocin to induce diabetes. Following streptozotocin administration, rats were split into four groups. First, a positive control group (+ve) of rats was created. The other groups were provided with experimental meals that contained different percentages of dried banana peels: 5%, 10%, and 15%, respectively. After six weeks of the experiment, the glucose levels were determined. Additionally, the roles of the liver and kidneys were established. As well as, a lipid profile was created. The kidney, liver, and pancreas were examined histologically. The results indicated that groups 3, 4, and 5 had lower liver enzyme levels of ALT and AST than the positive control group. In comparison to the positive control group, all examined groups had significant improvements in urea nitrogen and uric acid. The results of histological investigations, which correlated with the biochemical study, significantly improved with the addition of dried banana peels. The study suggests that increasing banana peel consumption may be beneficial for diabetes patients, potentially acting as an anti-diabetic agent.