Type 1 diabetes (T1D) and autoimmune thyroid diseases (AITD) frequently occur together within families and in the same individual in most parts of the world. Type 1 diabetes is the most prevalent chronic disease in the population under 18 years of age although there are no reliable data available from many countries. The co-occurrence of T1D and AITD in the same patient is one of the variants of the autoimmune diseases. The two major autoimmune thyroid diseases (ATDs) include Graves' disease (GD) and autoimmune thyroiditis (AT); both of which are characterized by infiltration of the thyroid by T and B cells reactive to thyroid antigens, by the production of thyroid autoantibodies and by abnormal thyroid function (hyperthyroidism in GD and hypothyroidism in AT). While the exact etiology of thyroid autoimmunity is not known, it is believed to develop when a combination of genetic susceptibility and environmental encounters leads to breakdown of tolerance. It is important to recognize thyroid dysfunction at an early stage by maintaining an appropriate index of suspicion. The presence of both thyroid dysfunction and diabetes mellitus is increasing in prevalence and is seen among many patients. Many different studies have been performed globally to ascertain this relationship. Our aim in this article is to access the correlation between thyroid dysfunction and Type 1 diabetes mellitus and to assess the prevalence of T1DM-associated autoimmune diseases in children and adolescents and their impact on the course of T1DM. We also present suggestions concerning screening tests. Methods: Using internet search, a comprehensive literature review was done and words such as diabetes mellitus, autoimmune thyroid, hypothyroidism, hyperthyroidism, thyroid antibodies, and thyroid problems were searched. The references of the relevant articles on this subject were also searched for further information. Results: Analyses of results of various studies from various parts of the world were considered and their prevalence was noted to access the correlation between thyroid dysfunction and diabetes mellitus. Subclinical hypothyroidism is seen as the commonest thyroid problem among female type 1 diabetics. Conclusion: There is a strong relationship between thyroid dysfunction and Type 1 diabetes mellitus.