prevalence of insulin resistance and type 2 diabetes increases rapidly; however, treatments are limited. Various herbal extracts have been reported to reduce blood glucose in animals with either genetic or dietary type 2 diabetes; however, plant extracts are extremely complex, and leading compounds remain largely unknown. Here we show that 5-O-methyl-myo-inositol (also called sequoyitol), a herbal constituent, exerts antidiabetic effects in mice. Sequoyitol was chronically administrated into ob/ob mice either orally or subcutaneously. Both oral and subcutaneous administrations of sequoyitol decreased blood glucose, improved glucose intolerance, and enhanced insulin signaling in ob/ob mice. Sequoyitol directly enhanced insulin signaling, including phosphorylation of insulin receptor substrate-1 and Akt, in both HepG2 cells (derived from human hepatocytes) and 3T3-L1 adipocytes. In agreement, sequoyitol increased the ability of insulin to suppress glucose production in primary hepatocytes and to stimulate glucose uptake into primary adipocytes. Furthermore, sequoyitol improved insulin signaling in INS-1 cells (a rat -cell line) and protected INS-1 cells from streptozotocin-or H2O2-induced injury. In mice with streptozotocin-induced -cell deficiency, sequoyitol treatments increased plasma insulin levels and decreased hyperglycemia and glucose intolerance. These results indicate that sequoyitol, a natural, water-soluble small molecule, ameliorates hyperglycemia and glucose intolerance by increasing both insulin sensitivity and insulin secretion. Sequoyitol appears to directly target hepatocytes, adipocytes, and -cells. Therefore, sequoyitol may serve as a new oral diabetes medication. insulin resistance; diabetes; hyperglycemia GLUCOSE IS A PRIMARY METABOLIC fuel. Blood glucose levels are maintained within a narrow range through the action of insulin and other metabolic hormones (18, 34). Insulin decreases blood glucose by stimulating glucose uptake into adipose tissue and skeletal muscle and by suppressing hepatic glucose production (34). Insulin resistance is the primary risk factor for type 2 diabetes (42). Additionally, pancreatic -cell function is also impaired in type 2 diabetes and unable to secrete sufficient insulin to compensate for insulin resistance (26). Relative insulin deficiency, due to a combination of insulin resistance and impaired pancreatic -cell function, contributes to hyperglycemia and glucose intolerance in type 2 diabetes. Small molecules with the capability to improve insulin sensitivity and/or -cell function have a great therapeutic potential for the treatment of type 2 diabetes.Growing evidence indicate that herbal constituents hold a great promise for the treatment of type 2 diabetes, and extracts of numerous plants have been reported to reduce blood glucose (6,8,17,22,41). In search for small compounds with an anti-diabetic property, we examined natural compounds in plant extracts, focusing on inositol derivatives. Inositols consist of nine isomeric forms (myo-, scyllo-, epi-, al...