There is an urgent need for innovative treatment targeting multiple pathways of type 2 diabetes such as weight loss, insulin sensitization and beta cell proliferation. Natural products have been shown to have the potential to treat diabetes. Here we develop a novel compound from oleanolic acid with improved bioavailability and efficacy. BS-016 reduces blood glucose and induces a sustained weight loss in DIO mice, producing 15% weight loss in combination study. In db/db diabetic mice, BS-016 lowers plasma glucose and improves glucose homeostasis. In vitro studies show BS-016 promotes insulin sensitivity by activating PPAR gamma and increases energy expenditure. Taken together, these results indicate BS-016 is a promising agent for treating diabetes and obesity. Disclosure Y. Du: None.