Pancreatic regeneration after pancreatectomy has been well documented in animal models. However, the phenomenon of pancreatic regeneration in diabetes has not been exploited as yet. We report here the restoration of euglycaemic status in streptozotocin (STZ)-induced diabetic BALB/c mice, after 50% pancreatectomy. We observed that, after pancreatectomy, STZ-diabetic mice showed a rapid improvement in glycaemic status, starting from the 8th postoperative day, and remained normoglycaemic throughout a 90-day follow-up study. STZ-induced diabetic and control non-diabetic BALB/c mice underwent pancreatectomy and were monitored regularly for changes in body weight, plasma glucose and serum insulin concentrations and histological status of the pancreas. All the pancreatectomised animals showed euglycaemic status from about 20 days after operation, whereas a majority (around 70%) of the diabetic, sham-operated animals died of sustained hyperglycaemia by 20-30 days after operation. Examination of the regenerating pancreas indicated nesidioblastotic activity and supported the theory of a ductal origin of islet stem cells. Islets isolated from the regenerating pancreas showed a progressive increase in islet area (1227.9+/-173.2 micrometer(2) on day 5 compared with 2473.8+/-242.0 micrometer(2) by day 20). The increment in insulin concentrations and subsequent decrement in glycaemia of the diabetic pancreatectomised animals indicate islet neogenesis occurring after the operative insult, leading to a normoglycaemic status, probably recapitulating ontogeny. We have shown that induction of a regenerative stimulus (pancreatectomy) in conditions of STZ-induced diabetes may trigger pancreatic regenerative processes, thereby restoring a functional pancreas, in STZ-diabetic mice.