Labadou was prepared according to the traditional technology of Southern China and its aqueous extract (AEL) was obtained. The oxygen radical scavenging capacity of AEL was assessed. The hypolipidemic effects in hyperlipidemic rats of AEL were investigated through designed sequential trials and by measuring serum lipid parameters. Results showed that AELexhibited significant ( p < 0.01) scavenging potencies on superoxide and hydroxyl at a concentration of 10 mg/ml. It was also found that AEL could significantly reduce serum total cholesterol (TC) and triglyceride (TG) concentrations and at same time markedly increased the high density lipoprotein cholesterol (HDL-C) levels after 3 weeks treatment in tested rats. These results showed that Labadou had an excellent hypolipidemic activity and the peptides of low molecular mass from Labadou were one of the possible principles of bioactivity.