Diabetic nephropathy (DN) is a leading cause of end-stage renal disease (ESRD). The inhibitors of renin-angiotensin-aldosterone system (RAAS) can alleviate some of the symptoms of DN but fail to stop the progression to ESRD. Our previous studies demonstrate renoprotective action of nitro-oleic acid (OA-NO2) in several rodent models of renal disease. Here we examined the therapeutic potential and the underlying mechanism of combination of Losartan and OA-NO2 in db/db mice. OA-NO2 was infused at 5 mg/kg/day via osmotic mini-pump and Losartan was incorporated into diet at 10 mg/kg/day, each administered alone or in combination for 2 weeks. Diabetic db/db mice developed progressive albuminuria and glomerulosclerosis, accompanied by podocytes loss, increased indices of renal fibrosis, oxidative stress, and inflammation. Treatment of the diabetic mice with OA-NO2 or Losartan alone moderately ameliorated kidney injury; however, the combined treatment remarkably reduced albuminuria, restored glomerular filtration barrier structure, and attenuated glomerulosclerosis, accompanied with significant suppression of renal oxidative stress and inflammation. These data demonstrate that combination of Losartan and OA-NO2 effectively reverses renal injury in DN.