Diabetes, when uncontrolled, causes dyslipidemia often followed by atherogenic abnormalities. The present study was focused to determine whether ferulic acid (FA), a flavonoid, has any role to play in diabetes-induced dyslipidemia. Diabetes in rats was induced with streptozotocin. The levels of blood glucose and plasma triglycerides (TG), free fatty acids (FFA), cholesterol and phospholipids were elevated during diabetes. Treatment with FA significantly reduced the elevated plasma lipid and blood glucose levels; a more pronounced effect was found with low-dose ferulic acid than with high dose. Thus, our study demonstrates that ferulic acid lowers the lipid levels in diabetic rats and hence prevents further complications.