Decreased biological action of nitric oxide (NO) and increased oxidative stress are established to be involved in the development of endothelium dysfunction, early sign of diabetic angiopathy. In the present study, increased nitric oxide synthase (NOS) enzyme activity in the aorta and decreased activity in the kidney tissue of streptozotocin-induced diabetic rats has been found in the early phase of the disease. Augmentation of oxidative transformation of NO in the kidney and heart of the diabetic animals has been demonstrated by the measurement of the stable end-products of NO and other reactive nitrogen species. Insulin treatment was found effective to reduce the intensified oxidative metabolism of NO without increasing its production. Reduced biological effects of NO observed in endothelial dysfunction, is thus probably the consequence of its increased oxidative inactivation.