Diabetes mellitus(DM) is a globally prevalent chronic metabolic disease, and its hyperglycemia can lead to a series of serious complications. Although current DM treatments are effective, they still have side effects and limitations. Therefore, discovering new drugs has become a key approach to improving DM management. As a traditional Chinese medicine, Dendrobii Caulis has garnered significant attention due to its rich phytochemical properties, which may offer a natural approach to mitigate the harmful effects of DM. Studies have demonstrated that Dendrobii Caulis can significantly reduce blood glucose levels in diabetic animal models and improve insulin resistance. Modern pharmacological studies have shown that the hypoglycemic effect of Dendrobii Caulis is primarily based on multiple mechanisms, including improving insulin sensitivity, inhibiting liver glycogen breakdown, promoting liver glycogen synthesis, and reducing oxidative stress. In addition, polysaccharides in Dendrobii Caulis have been found to increase the serum level of glucagon-like peptide-1 (GLP-1), which promotes insulin secretion and inhibits glucagon release, thereby improving the symptoms of DM and its complications. Given its potential hypoglycemic effect, Dendrobii Caulis is expected to be developed as a new hypoglycemic agent or health food with promising prospects for treating DM and its complications. With further basic and clinical research, Dendrobii Caulis is expected to become an important adjunct in DM treatment.