This study aimed at investigating the structure, hypoglycemic activity and the underlying mechanism of a homogeneous polysaccharide (PSP-2) purified from Sargassum pallidum. Structural characterization revealed that PSP-2 with a molecular weight of 144.8 kDa was composed of fucose (21.6%), arabinose (2.5%), galactose (22.4%), glucose (2.2%), xylose (18.8%), mannose (1.2%), glucuronic acid (7.7%) and galacturonic acid (23.6%). The backbone chain of PSP-2 was composed of 1)--d-Xylp-(3, 1,3)--l-Fucp-(4, 1)--d-Galp-(6, and 1)--d-GlcpNAc-(2, and the side chains were composed of 1,3,6)--d-Galp-(2, 3)--l-Fucp-(1,4, -d-GalpNAc-(1, and -d-Manp-(1. In vitro hypoglycemic assays indicated that PSP-2 could significantly enhance glucose consumption, glycogen synthesis, and pyruvate kinase (PK) and hexokinase (HK) activities of insulin-resistant HepG2 cells. Furthermore, the underlying mechanistic studies revealed that PSP-2 could ameliorate insulin resistance by up-regulating the expression levels of insulin receptor substrate-1 (IRS-1), glycogen synthase (GS), phosphoinositide-3-kinase (PI3K) and glucose transporter-4 (GLUT4). These results suggested that PSP-2 may be a potential candidate for the prevention and treatment of Type 2 diabetes mellitus.