Background and Objective: Diabetes can lead to sexual dysfunction in patients. Recent studies indicate the influence of Dorema aucheri on sexual hormones. Therefore, we decided to elicit the effect of hydro-alcoholic extract of Dorema aucheri on serum levels of testosterone and FSH, testicular morphology and sperm count of Nicotinamide-STZ (streptozotocin) induced diabetes in rat models. Materials and Methods: A total of 42 male adult wistar rats weighing 150-250gm were entered into the study. To produce diabetic model, the animals received one dose of nicotinamide120 mg/kg and STZ60 mg/kg intraperitoneally. The animals were divided into 6 groups (7rats in each group): control, diabetic, diabetic+glibenclamid (0.6mg/kg), as well as variant doses of hydro-alcoholic extract of Dorema aucheri (100, 200, 400mg/kg). The extracts were gavaged once a day, 5 days per week for 3 weeks. 24 hours after the last gavage under deep anesthesia with ether, blood samples were collected from the heart and then serum levels of testosterone and FSH were measured. Subsequently, testicular morphology and caudal epididymal sperm numbers were determined and counted. The data were statistically analyzed with SPSS by one-way ANOVA whereby P<0.05 was considered as significant. Results: Serum level of testosterone exhibited a significant increase in diabetic rats compared with all other groups except the control group (P=0.05). The 200mg/kg extract concentration led to a significant increase in sperm counts in comparison with diabetic (P=0.003) and other groups (P<0.05). Conclusion: The results indicated that hydro-alcoholic extracts of Dorema aucheri improve sperm production process and increase sperm counts in rats. This positive effect may originate from the presence of flavonoids in Dorema aucheri plant.