Introduction: The prevalence of  Diabetes mellitus is growing rapidly worldwide and is reaching epidemic proportions. It is estimated that there are 285 million people with diabetes worldwide and this number is set to increase to 438 million by the year 2030. Methodology: 250 out patients of type 2 diabetes mellitus were selected at random. Based on levels of albuminuria the patients were categorized into normo albuminuria with <30 mg/gm of creatinine, microalbuminuria with 30-300mg/gm of creatinine, and macroalbuminuria with >300mg/gm of creatinine. Results: In the present study it was noted that among 250 patients studied, microalbuminuria was common in males, prevalence of microalbuminuria was 20%. Conclusion: Testing for microalbuminuria should be standardized in type 2 diabetes mellitus patients from time of first diagnosis of diabetes because early intervention helps in delaying the progression of diabetic nephropathy.