We investigated the effects of American ginseng (AG) and heat-processed American ginseng (H-AG) on diabetic renal damage using streptozotocin (STZ)-induced diabetic rats in this study. The diabetic rats showed a loss of body weight gain, and increases in kidney weight, food intake, water intake, and urine volume, whereas the oral administration of H-AG at a dose of 100 mg/kg of body weight per day for 20 days attenuated these diabetes-induced physiological abnormalities. Among the renal function parameters, the elevated urinary protein levels in diabetic control rats were significantly decreased by the AG or H-AG administrations, and the decreased creatinine clearance level was significantly increased in H-AG-administered rats. In addition, the markedly high serum levels of glucose and glycosylated protein in diabetic control rats were significantly decreased by the administration of H-AG, implying that H-AG might prevent the pathogenesis of diabetic complications caused by impaired glucose metabolism and glycosylation of serum proteins. Although no significant ameliorations were shown in overexpressed protein expressions related to diabetic oxidative stress by the AG or H-AG administrations, the accumulation of N (epsilon)-(carboxymethyl)lysine and receptors for advanced glycation endproduct (AGE) expressions were significantly reduced by the administration of H-AG. On the basis of these results, we found that AG and H-AG inhibit AGE accumulation in diabetic rat kidney by their hypoglycemic and renal function ameliorating effects, and this effect was stronger in the H-AG-administered group than in the AG-administered group. These findings indicate that H-AG may have beneficial effect on pathological conditions associated with diabetic nephropathy.