The invention provides a new medical application of a Chinese traditional medicine fructus ligustri lucidi and the producing method of the extract thereof, which is produced by following steps: ethanol circumfluence, extracting and concentrating from the plant fructus ligustri lucidi to get an ethanol extract, separation by crystallization with the hydrochloric acid function, NaOH treating, again acid out, washing, drying, obtaining other effective components. Pharmacological experiments prove that the medicine can be used for treating the II-type diabetes and induced complication, which has the effects such as reducing the blood sugar, triglyceride, total cholesterin, and low density lipoprotein, and increasing the high density lipoprotein and etc. Furthermore, it can avoid the weight decrease and has a long action and no side effects.