The aim of this study is to investigate the therapeutic effect of RegIII-proinsulin-pBudCE4.1 plasmid on streptozotocin (STZ)-induced type 1 diabetes mellitus and its underlying mechanisms.  The model of type 1 diabetes mellitus was established by intraperitoneal injections of STZ (40 mg·kg⁻¹) to Balb/c mice for five consecutive days.  Then, ten type 1 diabetic mice were intramuscularly injected with 100 μg RegIII-proinsulin- pBudCE4.1 plasmid for 4 weeks (one time/week) and the blood glucose levels were monitored every week; whereas another ten diabetic mice served as negative control group were injected with pBudCE4.1 vector at   the same dose.  Normal control and model control mice were treated with normal saline at identical volume  under the same way.  Western blotting, MTT assay, ELISA, HE staining and Tunel assay were applied to    explore the underlying mechanisms.  Results showed that RegIII-proinsulin-pBudCE4.1 plasmid ameliorated the hyperglycemia symptoms in diabetic mouse remarkably.  It induced an immunological tolerance state in type 1 diabetic mice by inhibiting the proliferation of splenic lymphocytes and recovering Th1/Th2 balance  evidenced by MTT and ELISA analysis.  Furthermore, it elevated insulin concentration in the serum of type 1 diabetic mice and promoted the regeneration of β cells supported by the results of HE staining and Tunel assay.  In conclusion, RegIII-proinsulin-pBudCE4.1 plasmid possesses powerful anti-diabetic ability, which may be   involved in the inducing of immunological tolerance and enhancing β cells recovery.