Using high-fat diet-induced obese (DIO) mice, the mechanism of anti-adiposity and anti-obesity actions produced by Inonotus obliquus water extract (IOE) was investigated. Significant reduction in body weight in DIO mice orally administrated with IOE for 8 weeks compared to IOE-non-treated control mice was observed, which was attributed to the reduction of epididymal and mesenteric adipose tissue, but not the liver and skeletal muscle. Adiponectin synthesis in epididymal adipose tissue (EAT) and AMPK phosphorylation in the liver were significantly increased in IOE-treated DIO mice. Gene expression analysis showed that IOE-treated DIO mice had higher expression levels of lipogenic genes in EAT and fatty-acid oxidative genes in the liver, but lower expression levels of hepatic pro-inflammatory cytokines compared to IOE-non-treated controls. Our findings confirm a therapeutic potential of Inonotus obliquus for reducing adiposity and ameliorating hyperlipidemia to treat metabolic disorders.