Diabetes mellitus (DM) is a global health challenge, with diabetic liver injury being a critical complication driven by oxidative stress, hyperglycemia, and inflammation. This study evaluates the synergistic therapeutic potential of green silver nanoparticles (Ag NPs) synthesized with Moringa oleifera leaf extract to mitigate liver dysfunction in streptozotocin (STZ)-induced diabetic rats. Ag NPs were characterized using transmission electron microscopy (TEM) to determine their morphology and size. Fifty adult albino rats were divided into five groups: Group I (control), Group II (diabetic), Group III (diabetic treated with Ag NPs), Group IV (diabetic treated with M. oleifera), and Group V (diabetic receiving combination treatment). Biochemical parameters, including glucose, HbA1c, insulin, ALT, AST, albumin, total protein, total bilirubin, GSH, SOD, CAT, and MDA, were assessed alongside histological examinations of the liver and pancreas. STZ-induced diabetic rats exhibited significant hyperglycaemia, elevated HbA1c levels, impaired liver function, and oxidative stress. Treatment with Ag NPs and M. oleifera leaf extract improved glucose metabolism, restored antioxidant defences, and normalized liver biomarkers. The combined treatment demonstrated superior efficacy, significantly reducing serum glucose, HbA1c, ALT, and AST levels while enhancing insulin, GSH, and SOD levels. Histological analysis confirmed the amelioration of STZ-induced hepatic and pancreatic structural damage. These findings underscore the therapeutic potential of green silver nanoparticles and M. oleifera leaf extract as a novel intervention targeting oxidative stress, inflammation, and liver dysfunction in diabetes.