Hematological parameters are significantly affected by diabetes. Recently, flaxseed is used in different forms such as powder or oil as a natural supplement which may improve diabetic patient health. High-fat diets with specific doses of streptozotocin STZ can induce type 2 diabetes (T2-DM). The aim of this study was to explore the effects of flaxseed forms as a powder and oil on various hematological parameters in STZ induced type 2 diabetes and compare those with control group and diabetic group. The study was conducted on 24 albino rats (weight ranging from 150–180 gm) were divided into four (N= 6): (Gp1) served as control nondiabetic group, Gp2 was diabetic rats, Gp3 served as diabetic rats treated with flaxseed powder 10%, Gp4 was diabetic rats treated with flaxseed oil 4%. After 90 days of treatment, hematological parameters such as the total red blood cell counts (RBCs), hemoglobin, hematocrit (Hct%), red cell distribution width (RDW), platelet count, and white blood cell counts (WBCs) were examined. Compared to the Gp1, RBC indices were lower in Gp2, but they were in the same range as nondiabetic rats in Gp3 & Gp4. Total WBC and neutrophils percentage were increased while lymphocytes were decreased in the diabetic group compared to the control. Also, the platelets counts were increased in diabetic rats compared with nondiabetic but reduced to normal range in Gp3 & Gp4. In conclusion, flaxseed powder and oil may reverse hematological abnormalities in T2-DM rats and could be effective in preventing diabetes complications such as anemia.