Diabetes mellitus has been considered as one of the major health concerns all around the world today. The present study was aimed to demonstrate the histological changes in the pancreas and liver of streptozotocin (STZ) induced diabetes in albino rat. Twenty four rats were separated into two groups. Group I served as normal control and group II served as diabetic. The diabetic condition was induced in group II by streptozotocin. Light microscopic assessment of islets showed highly disrupted cells with necrosis in diabetic rats. The present study revealed that induction of diabetes using STZ results in the alteration of the morphology of endocrine part of pancreas as well as liver in rats.