Objective To observe the effect of Valsartan on the early type 2 diabetic nephropathy with UAER. Method 49 cases of type 2 diabetes mellitus with nephropathy were divided into two groups at random: one was normal control group (n=24), the other was given Valsartan 80mg qd (n=25) respectively without changing the previous management of DM. After 12 weeks of treatment the changes of UAER was observed. Result In the control group the UAER changed significantly (P0.05). Conclusion AT1 Ra Valsartan is effectively reducing the micro albumin excretion in the early diabetic nephropathy and thus protect the kidney.