Polysaccharide –based hydro gels from marine algae are attractive materials for biomedical applications which include polyfunctionality and biodegradability. There were reports of many algae based hydrogels and their applications in diabetic neuropathy. The present study aims to investigate the progressive effects of injectable Chitosan-Ulva lactuca polysaccharide hydrogel (C-UL hydrogel) on experimentally induced diabetic neuropathy in mice. Physicochemical properties of C-UL hydrogel were analyzed by proximate composition, FTIR, SEM, and swelling properties. Diabetes was induced by a single intraperitoneal injection of streptozotocin (STZ, 60 mg/kg). C-UL hydrogel treatment was started 15 days after diabetes induction and continued for 30 days. Serum levels of cholesterol profile and insulin were assessed. In liver, brain, and pancreas tissues, antioxidants superoxide dismutase (SOD), catalase (CAT), glutathione-S-transferase (GST) were measured. In the liver, brain and pancreas tissues, C-UL hydrogel attenuated diabetes-induced changes in serum antioxidants and cholesterol excluding insulin. Diabetes-induced dysregulated levels of SOD, CAT, and GST were ameliorated by C-UL hydrogel. Histopathological analysis shows that C-UL hydrogel corrects the altered neuronal changes in diabetic animals. C-UL hydrogel prevents brain damage by regulating the antioxidant pathways in the mice model.