To investigate the protective effect of vanillic acid (VA) in streptozotocin (STZ)-induced diabetic nephropathy (DN) in rats. Experimental diabetes mellitus in rats was induced by intraperitoneally administration of single dose of STZ (55mg/kg). The animals were divided into 5 groups viz., normal control, diabetic control, glimepiride (0.5mg/kg, orally) and VA treatment (50 and 100mg/kg, orally) groups. The treatment was started after the confirmation of hyperglycemia (> 250mg/dl) and continued for 6 weeks. Serum glucose level, and body weight were measured weekly. At the end of study, HbA1c in whole blood, insulin, lipid profile, urea, creatinine and albumin in serum. Creatinine and albumin were measured in urine along with creatinine clearance. In addition, kidney weight and histopathology were assessed. Treatment with VA markedly attenuated STZ-induced body weight loss and hyperglycemia, along with improved lipid profile and HbA1c, without significant alteration of serum insulin levels. It also decreased urea, creatinine and increased albumin in serum. Moreover, VA, significantly reduced urine volume, urinary albumin along with marked improvement in creatinine clearance. Further, the VA treatment significantly reverse the raised levels of oxidative stress markers, pro-inflammatory and fibrotic markers viz. TNF-α, IL-1β, IL-6, TGF-β1 and NFκB activity in kidney tissue. These effects are associated with amelioration of histopathological alterations compared to diabetic control rats. While glimepiride produced similar antihyperglycemic effect but the effect on albuminuria, oxidative stress markers and cytokine levels were less significant as compared to VA (100mg/kg). In conclusion, VA exhibited nephroprotective effect through amelioration of kidney dysfunction and damage in diabetic rats. The observed nephroprotective effect of VA may be ascribed to inhibition of hyperglycemia induced oxido-inflammatory stress and necroptosis of renal tissue possibly due to its antihyperglycemic, antioxidant and anti-inflammatory actions.