The objective of this study was to investigate the effects of taurine on PPAR-γ, IRS-1, HSP-27, and HSP-72 levels along with the kidney histopathological changes in streptozotocin (STZ) induced diabetic rats. In the study, 40 Wistar albino male rats were divided into four groups. (i) Control group, (ii) Taurine, rats received taurine with drinking water (2%); (iii) STZ, rats were injected with STZ (60 mg/kg i.p. as single dose) and (iv) STZ+Taurine, rats received taurine and injected with STZ. After 8 weeks of the study, the Taurine group was found to be statistically indifferent to the control group in terms of PPAR-γ, IRS-1, HSP-27, and HSP-72 levels (P>0.05). However, PPAR-γ (P<0.01), IRS-1 and HSP-72 (P<0.001) levels decreased in the STZ group. HSP-27 (P<0.01) levels increased in the STZ group as compared with the control. On the other hand, there were histopathological changes in the STZ group. The intensity of histopathological changes induced by STZ was decreased in the STZ+Taurine group. As a result, the taurine supplementation may prevent and treat the kidney damage in diabetic rats.