Obesity and overweight are well known risk factors for coronary artery disease (CAD), and are expected to be increasing in the Kingdom of Saudi Arabia (KSA). Elevated levels of total and low density lipoprotein (LDL) cholesterol and low levels of high density lipoprotein (HDL) cholesterol are important risk factors for coronary heart disease. Diabetes mellitus is a major risk factor for the development of cardiovascular complications and cardiovascular disease. Camel’s milk is a good source of various vitamins and minerals and is characterized for its low cholesterol and high concentration of insulin. Therefore, in this study was undertaken to investigate the effect of camel milk on plasma glucose and plasma and tissue lipid profiles in streptozotocin-induced diabetic rats. Diabetes was induced in adult male albino rats of the Wistar strain, weighing 180–200 g, by administration of streptozotocin (40 mg/kg of body weight) intraperitoneally. Rats were randomly divided into five groups. Group I: control animals (normal, nondiabetic animals), Group II: camel milk control, Group III: streptozotocin-diabetic, untreated animals; Groups IV: streptozotocin-diabetic animals given 250 mL/day camel milk, and Group V: streptozotocin-diabetic animals given glibenclamide (600 µg/kg body weight). The levels of total cholesterol, triglycerides, free fatty acids, and phospholipids, were assayed in the plasma besides lipoprotein-cholesterol (high density lipoprotein-cholesterol (HDL-C), low density lipoprotein- cholesterol (LDL-C) and very low density lipoprotein-cholesterol (VLDL-C)) and tissues (liver, kidney and heart). Total cholesterol, triglyceride, free fatty acid, and phospholipid (LDL-C and VLDL-C in plasma only) levels increased in plasma and tissues significantly, while plasma HDL- cholesterol significantly decreased in diabetic rats. Treatment with camel milk prevented the above changes and improved towards normalcy. Thus administration of camel milk is able to reduce hyperglycemia and hyperlipidemia related to the risk of diabetes mellitus and it may better therapeutic potential for obese diabetic patients.