The rapidly increasing number of diabetic patients across the world drew the attention to develop more effective therapeutic approaches. Recent investigations on newly differentiated insulin producing cells (IPCs) revealed that they could be derived from embryonic, adult mesenchymal and hematopoietic stem cells. This work was planned to evaluate the role of StemEnhance in mobilizing naturally occurring bone marrow stem cells in addition to the effect of this mobilization in improving streptozotocin-induced diabetes mellitus in rats. Forty-four adult male albino rats were included in this study. They were divided into four groups namely the control, the diabetic, the positive control-StemEnhance and the diabetic-StemEnhance groups. The mean number of CD34 immunopositive cells was measured by flowcytometry and random blood sugar was measured weekly. The pancreas was removed from the sacrificed rats and processed for staining with H&E and immunohistochemical staining for CD34 +ve and insulin +ve cells. Data obtained by morphometric study were discussed in relation to the findings detected by microscope. CD34+ve cells increased in the blood after introduction of StemEnhance. CD34 +ve cells were observed in the pancreas throughout the four weeks of treatment and the insulin producing cells in the islets of Langerhans gradually increased from the first to the fourth week of treatment. Blood glucose level decreased but it was still higher than the control level after four weeks of treatment with StemEnhance.