Introduction:Diabetes mellitus is one of the systemic diseases affecting the kidneys which significantly impacts morbidity, mortality and quality of life.The onset of diabetic nephropathy is signaled by microalbuminuria (Albumin/Creatinine ratio, ACR = 30 to ≤ 300 mg/g) which progresses to macroalbuminuria and eventually lead to an End Stage Renal Disease (ESRD).  Objectives:To estimate the concentration of fasting blood glucose, HbA1c &microalbuminuria in detection of renal dysfunction in Type–2 diabetics as compared to healthy controls. Methodology:In this study, 50 proven cases of Type–2 Diabetic patients and an equal number of age and sex matched healthy controls were included. Results:The serum concentrations of FBG, HbA1C &Microalbuminuria were found to be significantly increased in Type–2 Diabetic patients as compared to healthy controls (p, < 0.001). Conclusion: Estimation of microalbuminuriawould allow to detectthe degree of renal impairment in diabetic nephropathy. Microalbuminuria has emerged as a very powerful clinical predictor of overt renal disease in diabetes.