Natural astaxanthin exists widely in algae, fungi, shrimp and crab, and, as a strong antioxidant, has potential effects on cardiovascular diseases, cancer, liver diseases and other physical health diseases. The treatment of many diseases involves the body’s signal transduction to regulate the body’s antioxidant defense system and inflammation. Astaxanthin is usually used as a dietary supplement, which plays an antioxidant and anti-inflammatory role in the organism. This article reviews the structure, source of astaxanthin and how it plays an anti-inflammatory and anti-oxidant role in organisms, especially in treating diabetes.