Citrus fruits rich in flavonoids elicit their health benefits in prevention/management of metabolic disorders. This study explores the mechanism of naringenin (NG), a flavanone, as an antihyperglycemic and antilipidemic agent on high fat diet (HFD) fed streptozotocin (STZ) induced diabetic rats. NG (25 mg/kg bw) treatment to diabetic rats for 45 days markedly reduced hyperglycemia and hyperinsulinemia, restored lipid profile changes, decreased membrane lipid peroxidation; enhanced the activities of antioxidants and improved hepatic function markers. NG treatment also modulated the expressions of GLUT-4 and TNF-α and restored histological abnormalities in diabetic rats. NG supplementation potentially enhances insulin sensitivity that helps in rebuilding glucose homeostasis in diabetic rats. These findings suggest that NG could be used as a functional and nutraceutical ingredient in combating T2D. © 2015 Elsevier Ltd.