Sepsis has been associated with a lipopolysaccharide (LPS) induced bacterial infection and causes biochemical, hemodynamic and physiological alterations in a system. Erythrocyte deformability is very critical for a microcirculatory system to function effectively. Hence, we were interested in examining the effects of a potent antioxidant, melatonin (Mel), on lipid peroxidation and deformability of eythrocytes in LPS-induced experimental sepsis. Male Swiss Albino rats were used in 6 groups, each group comprising of 10 animals. The first group was the control, and the other groups were administered LPS (10 mg/kg, i.p.), Mel (10 mg/kg, i.p.), LPS + L-NAME (5 mM, i.p.), Mel + LPS and Mel + LPS + L-NAME, respectively. Deformability of the RBCs decreased significantly (p < 0.05) in the LPS group in comparison to all other groups. This reduction was prevented with both L-NAME and Mel, but was not as significant as when administering L-NAME or Mel alone. This result was adversely seen in nitric oxide levels, i.e. RBCD was reduced when the NO levels were higher. Therefore in the Mel group the NO levels were reduced while the RBCD enhanced. In addition to these, as an index of lipid peroxidation, the Malondialdehyde levels were elevated in LPS groups whereas the deformability was reduced. This lipid peroxidation was suppressed by Mel and/or L-NAME significantly, where the RBCD was enhanced. These results show that, Melatonin can elevate the RBCD in experimental sepsis due to its nitric oxide scavenging activity and antioxidant effect as revealed by lipid peroxidation.