A great deal of investigations have verified that diabetic male reproductive impairment is associated with the dysfunction of testicular steroidogenesis and spermatogenesis resulted from insulin deficiency and hyperglycaemia-induced oxidative stress. It has been identified taurine is profitable for diabetes mellitus and diabetic implications through its insulin-like and islet cells protective activity. Furthermore, our previous studies found that taurine could increase testicular antioxidative ability, stimulate the endocrine activity of hypothalamic-pituitary-testicular axis, elevate testosterone level, raise sperm quality, suppress the deterioration of testicular function. Accordingly, we hypothesized that taurine may have beneficial effects on testicular dysfunction under diabetic mellitus status. Here, we investigated the effects of taurine on testicular steroidogenesis and spermatogenesis in streptozotocin (STZ)-induced type I diabetic rats. We observed that taurine treatment can markedly increase the body and testis weights, testicular SDH and G6PDH activities, decrease the serum fasting glucose concentration of diabetic rats. Serum contents of GnRH, LH, FSH, T, and testicular StAR, 3β-HSD, 17β-HSD mRNA expression levels were also obviously raised by taurine administration, indicating that taurine can improve testicular steroidogenesis in diabetic animals. Finally, we found taurine supplementation effectively elevated the sperm count and motility, reduced sperm abnormality, suggesting that taurine can increase the testicular spermatogenesis function of diabetic rat. In summary, the present data indicated that taurine can rescue the function of testicular steroidogenesis and spermatogenesis in STZ-induced type I diabetic rats possibly by increasing the endocrine activity of hypothalamic-pituitary-testicular axis.