Adiponectin is a complex protein hormone that is produced by adipocytes and skeletal muscle, as recent studies have shown. The level of adiponectin is higher in healthy individuals and paradoxically, decreased in obesity and related metabolic disorders. Though it was discovered a decade ago, the physiological roles of the hormone have come to light only recently, with advances in biochemical methods to measure its plasma level. A relatively new hormone, adiponectin has been found play important regulatory roles in many metabolic pathways. Various studies have shown that an increase in adiponectin levels has a protective effect in insulin resistance, type 2 diabetes mellitus, coronary heart disease (CHD) and cerebrovascular accidents (CVA). This short communication aims to highlight the physiological actions of adiponectin and its potential value in the management of these conditions.