Objective To investigate protective effects of ulilnastatin(UTI) on kidneys of diabetic rats and the mechanisms. Methods 10 rats were randomly selected from 30 Wistar rats as the control group(group A). The remaining 20 rats injected with streptozotocin(STZ) were randomly divided into the diabetic group(group B) and the UTI group(group C), 10 rats in each group. Rats in group C were intraperitoneally administered UTI at the dose of 40000IU/kg, and rats in groups A and B were intraperitoneally administered a same volume of normal saline. At the 8th and 12th weeks, fasting blood glucose(FBG), urine creatinine and serum creatinine(Scr) were detected; 24h urine was collected, and the albumin was detected, and creatinine clear rate(Ccr) was calculated. Nephridial tissue homogenate was made and malondialdehyde(MDA), superoxide dismutase(SOD), Connective tissue growth factor(CTGF), matrix metallopeptidase-9(MMP-9) and plasminogen activator inhibitor1(PAI-1) in serum and nephridial tissue homogenate were detected. Results ① FBG in groups B and C was obviously increased than in group A (P<0.05), while there was no significant difference between group C and group B (P>0.05). ② 24h urinary albumin and Scr were obviously increased in groups B and C than in group A (P<0.05), and they were obviously decreased in group C than in group B(P<0.05). ③ Ccr in groups B and C was obviously decreased than in group A (P<0.05), and that in group C was obviously increased than in group B(P<0.05). ④ In contrast to group A, MDA, CTGF and PAI-1 in groups B and C were obviously increased(P<0.05), those in group C were obviously decreased than group B(P<0.05). ⑤ SOD and MMP9 in groups B and C were obviously decreased than in group A(P<0.05), those in group C were obviously increased than in group B(P<0.05). Conclusion UTI exerts protective effects on renal function of diabetic rats, and the mechanism of this action is related to decreases of urinary albumin, MDA, CTGF and PAI-1, and increases of SOD and MMP-9.