This study aimed to evaluate the effect of phenolic extract and purified hydroxytyrosol (HT) from olive mill waste (OMW) on oxidative stress and hyperglycemia in alloxan-induced diabetic rats. The OMW biophenols were extracted using ethyl acetate. The obtained extract was fractionated by solid phase extraction (SPE) experimentation to generate two fractions: (F1) and (F2). HPLC-UV and HPLC-MS analysis showed that (F1) was made of known OMW monomeric phenolics mainly hydroxytyrosol (HT) while (F2) contained oligomeric and polymeric phenols such as verbascosid and ligstrosid. (HT) was purified from (F1) using silica gel-column chromatography and silica gel-TLC techniques. In incubated pancreas, supplementation of OMW fractions enhanced insulin secretion. The administration of OMW extract fractions (F1) and (F2) as well as purified (HT) in diabetic rats caused a decrease in glucose level in plasma and an increase in renal superoxide dismutase (SOD), catalase (CAT) and glutathione peroxidase (GPX) activities in liver and kidney. Furthermore, a protective action against hepatic and renal toxicity in diabetic rats was clearly observed. Furthermore, a significant decrease in hepatic and renal indices toxicity was observed, i.e. alkalines phosphatases (ALP), aspartate and lactate transaminases (AST and ALT) activities and the thiobarbituric acid-reactive substances (TBARs), total and direct bilirubin, creatinine and urea levels. In addition, (F1), (F2) and especially (HT) decreased triglycerides (TG), total-cholesterol (T-Ch) and higher HDL-cholesterol (HDL-Ch) in serum. These beneficial effects of OMW biophenols were confirmed by histological findings in hepatic, renal and pancreatic tissues of diabetic rats. This study demonstrates for the first time that OMW polyphenols and especially (HT) are efficient in inhibiting hyperglycemia and oxidative stress induced by diabetes and suggests that administration of HT may be helpful in the prevention of diabetic complications associated with oxidative stress.