Objective: To explore the relationship of depression with quality of life among type 2 Diabetic patients in comparison with healthy individuals (controls). Methodology: the present study was case control study. The data was collected from SVIMS Endocrinology OPD in Tirupati. during the period of January 2016 to July 2016. There were 300 participants including 150 type 2 DM patients, whilst for a comparative assessment a group of 150 healthy individuals (age and gender matched) were also selected as a control to meet the purpose of the study. Subjects age range was set between 35-65 years. The study comprised of type 2 DM patients. While inclusion criteria the type 2 DM patients with duration of 5 years and above attending OPD SVIMS, were selected as a cases and healthy individuals (controls) were selected from the hospital staff. Sample was selected by simple random sampling technique using random number generated in MS excel. Beck depression inventory (BDI-II) developed by Aeronbeck in 1996 and WHO quality of life scale (QOL BREF) by Frisch 1994 were used for data collection. The data was interpreted through SPSS-20. Results: the study findings showed that significant but negative relation between depression scores and quality of life. Good quality of life was negatively corelated in comparison to the depression in diabetic patients (γ = -0.617**, p<0.01). It was also identified that there was significant difference among gender and residence with respect to mean scores of Quality of Life at p>< 0.05 level, educational status, occupational status and monthly income at p < 0.01 level and there were also significant difference among educational status, occupational status and monthly income with respect to mean scores of depression at p<0.01 level and with regard to residence and living status at p>< 0.05 level. n observed linking depression and sub-scales of quality of life indicating that high depression scores may lead to lower physical and psychological health impacting social relationship and environmental health.