Aim: This study was aimed to probe the effects of pioglitazone treatment on oxidative stress and erythrocyte membrane topographic alterations in type-2 diabetics with and without incipient nephropathy. Methods: Sixty type-2 diabetic patients inadequately controlled by diet, exercise and sulfonylurea monotherapy were enrolled for this study. We investigated the effects of pioglitazone treatment on plasma glucose and glycated HbA1c, plasma nitric oxide end products, erythrocyte membrane: lipid peroxides, cholesterol, phospholipids, glycation and oxidation of spectrin, adenosine triphosphatase activities and antioxidants such as Cu,Zn-superoxide dismutase, catalase and reduced glutathione from erythrocytes in these patients. Results: After 8 week pioglitazone treatment, significant decrease in plasma glucose and glycated HbA1c, plasma nitric oxide end products, erythrocyte membrane: lipid peroxides, cholesterol, phospholipids, glycation and oxidation of spectrin and significantly increased activities of adenosine triphosphatases, Cu,Zn-superoxide dismutase, catalase activities and reduced glutathione levels were observed. Conclusion: Thus, pioglitazone treatment significantly ameliorated the oxidative stress and erythrocyte membrane defects in these patients. We suggest early consideration of pioglitazone in type-2 diabetics with and without incipient nephropathy.