OBJECTIVE： To evaluate the clinical efficacy of liraglutide and insulin glargine in the treatment of type 2 diabetes mellitus （T2DM） and conduct pharmacoeconomic analysis， and to provide economical and reasonable T2DM treatment plan. METHODS： 80 T2DM patients were randomized into liraglutide group and insulin glargine group， with 40 cases in each group. Both groups were given Metformin hydrochloride sustained-release tablet orally 0.5-2.0 g/d， and diabetes mellitus diet and sport training guide after oral antidiabetic drug withdrawal of previous treatment plan. Liraglutide group was given Liraglutide injection hypodermically， 0.6-1.2 mg， qd； insulin glargine group was given insulin glargine hypodermically at 22 o’clock， initial dose of 0.2 IU/（kg·d）， adjusted according to the levels of PG， FBG， nocturnal blood glucose level till FBG≤7 mmo1/L and 2 h PG ≤10 mmol/L in both group. Treatment course of 2 groups lasted for 12 weeks. The changes of FBG， 2 h PG， HbA1c and BMI were observed in 2 groups before and after treatment. 2 therapy plans were evaluated and compared by cost-minimization analysis. RESULTS： After treatment， the levels of FBG， 2 h PG and HbA1c decreased significantly in 2 groups， compared to before treatment， with statistical significance （P＜0.05）， but there was no statistical significant difference between 2 groups （P＞0.05）. After treatment， BMI of liraglutide group decreased significantly compared with before treatment and insulin glargine group， with statistical significance （P＜0.05）. There was no statistical significant difference in BMI of insulin glargine group before and after treatment （P＞0.05）. Cost-minimization analysis showed that the cost of insulin glargine group in reducing FBG， 2 h PG and HbA1c were less than liraglutide group， but were more than liraglutide group in reducing BMI. ?Sensitivity analysis demonstrated the stability and reliability of cost-minimization analysis. CONCLUSIONS： Liraglutide and insulin glargine have the same clinical efficacy， but insulin glargine need lower cost in blood glucose control， and liraglutide is better therapy plan for body weight control.