To investigate the effect of ethanolic extract from Artemisia Argyi Folium on blood glucose and blood lipids in diabetic mice, ICR mice were induced by intraperitoneal injection of 35 mg/kg streptozotocin (STZ) and a high-carbohydrate/high-fat diet to construct type 2 diabetes mellitus model. Diabetic mice were randomly divided into three groups: the model group (5 mL/kg 0.5% CMC-Na), the Artemisia Argyi Folium ethanolic extract low-dose group (100 mg/kg ) and high-dose group (400 mg/kg ). During the treatment for 6 weeks, the amount of drinking water and food intake of mice were recorded every day. Blood glucose and body weight were recorded every week. After treatment for 6 weeks, serum total cholesterol (TC), triglyceride (TG), high density lipoprotein cholesterol (HDL-C), low density lipoprotein cholesterol (LDL-C),and oral glucose tolerance (OGTT) were measured. The results showed that the amount of drinking water and food intake of mice significantly decreased (P < 0.01) in the Artemisia Argyi Folium ethanolic extract high-dose group; oral glucose tolerance was significantly improved (P < 0.01) and the contents of TC, TG and LDL-C were significantly decreased in the Artemisia Argyi Folium ethanolic extract low-dose group (P < 0.01). The ethanolic extract from Artemisia Argyi Folium could significantly improve the glucose and lipid metabolic disorder in T2DM mice in a dose-dependent manner.