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Edible fungus has attracted great interest with many health benefits, and polysaccharides from them have shown great potentials. In this study, polysaccharides were extracted from Sphacelotheca sorghi (Link) Clint. Monosaccharide composition of S. sorghi polysaccharides (SSP) was detected by high‐performance anion exchange chromatography (HPAEC) and mainly consists of glucose (70.5%), galactose (15.6%), mannose (7.2%), arabinose (5.8%), and rhamnose (0.9%). Type 2 diabetes (T2D) was induced by a high‐fat, high‐sugar diet‐fed (HFSD) diet with streptozotocin (STZ) injection in mice, and hypoglycemic and hypolipidemic regulations of SSP were evaluated. After oral treatment of high dose of SSP (200 mg/kg/day), the fasting blood glucose (FBG) was reduced by 39.3%, the insulin resistance of T2D mice was relieved, the lipids metabolism disorder caused by diabetes was improved, and the levels of liver glycogen was increased by 34.1%, compared with the model control. Histopathological examination showed that SSP relieved liver damage. Furthermore, SSP regulated glucose and lipid metabolism by activating phosphoinositide 3‐kinase/Akt signaling pathway. Overall, SPP is promising to be used as a functional food for the improvement of metabolic disorders. Practical Application: For enhancing the utilization rate and economic value of an edible fungi Sphacelotheca sorghi (Link) Clint., the total polysaccharides were isolated and used to investigate the effect of fungi in terms of balancing the levels of blood glucose and lipids. The S. sorghi polysaccharide treatment resolved the symptoms and insulin resistance in mice with diabetes, signifying its potential application in producing different functional foods for preventing or controlling diabetes. [ABSTRACT FROM AUTHOR]