AIM OF THE STUDY: With a global increase in the diabetes epidemic, it is inevitable that diabetic complications become a major issue in the future. Diabetic kidney disease is under diagnosed and under treated even now, when detection of early stages is simple. The earliest clinically detectable stage of Diabetic kidney disease is microalbuminuria. Microalbuminuria represents the earliest clinical evidence of diabetic nephropathy and it is a marker of increased cardiovascular morbidity and mortality. STUDY DESIGN: A cross sectional study was done during the period of March 2011 to November, 2011. The present study included fifty (50) patients of type 2 DM out of them, 23(46%) had microalbuminuria and 27(54%) are normoalbuminurics. The study also included 50 healthy control subjects who are age matched. The biochemical parameters studied were urine microalbumin, urine creatinine, Serum Total Cholesterol, serum Triglycerides, LDL, VLDL, HDL, Blood Urea, Serum creatinine. All the cases were segregated into 2 groups as cases with microalbuminuria and without microalbuminuria (based on urinary albumin level of 30-300 mu g/mg of Creatinine) RESULTS: As per the results obtained it is found that microalbumin / creatinine ratio is increased in microalbuminurics when compared to normoalbuminurics. In the present study microalbuminurics are overweight; (BMI = 23, overweight) and has increased diastolic blood pressure, Fasting blood glucose, serum creatinine, Triglycerides and VLDL than normoalbuminurics. CONCLUSIONS: Early detection of microalbuminuria allows the implementation of individualized and aggressive intervention programs to reduce renal and cardiovascular risk factors.