The long-term effects of Cinnamomum zeylanicum Blume oil on some physiological parameters were investigated in streptozotocin (STZ)-induced diabetic and non-diabetic male Wistar rats. STZ-induced diabetic rats showed significant increases in the levels of blood glucose, triglycerides, cholesterol, low density lipoprotein LDL-cholesterol, urea, alanine aminotransferase (ALT) and aspartate aminotransferase (AST) while high density lipoprotein HDL-cholesterol, total protein and uric acid levels were significantly decreased compared to normal rats. Administration of cinnamon oil to diabetic rats resulted in a significant decrease in blood glucose, triglycerides, cholesterol, LDL-cholesterol and ALT while HDL-cholesterol level was markedly increased after seven weeks compared to untreated diabetic rats. In comparison with control, administration of cinnamon oil significantly decreased the levels of triglycerides, urea and AST and significantly increased the levels of ALT and uric acid in non-diabetic rats after seven weeks. The results of this study indicate that the diet containing the oil of C. zeylanicum improves the examined physiological parameters in STZ-induced diabetic rats especially when it is used for a longer period.