Introduction: Diabetes mellitus, a chronic metabolic disorder characterized by persistent hyperglycemia, is one of the leading global health challenges. Objective: The main objective of the study is to find the pathological impact of diabetes on renal function.Methodology: This observational study was conducted and a total of 169 patients diagnosed with diabetic kidney disease (DKD) were enrolled in the study. Patients with type 2 diabetes with confirmed DKD, as evidenced by persistent albuminuria (≥30 mg/g) and/or reduced estimated glomerular filtration rate (eGFR < 60 mL/min/1.73 m²) over a period of at least three months were included in the study. Results: Data were collected from 169 patients, with a mean age of 58.4±12.3 years. The gender distribution was 55% male and 45% female. The mean HbA1c was 8.2±1.5%, indicating poor glycemic control, while the mean eGFR was 48.5±8.9 mL/min/1.73 m², suggesting moderate kidney impairment. The albumin-to-creatinine ratio averaged 215.4±45.7 mg/g, reflecting significant proteinuria. These parameters highlight the participants' high risk for diabetic kidney disease. The SGLT2 group showed a significantly lower mean eGFR decline (4.2 mL/min/1.73 m²) compared to the non-SGLT2 group (8.7 mL/min/1.73 m²), with a p-value of <0.01, indicating superior renal protection. Additionally, the SGLT2 group achieved a 25% reduction in the albumin-to-creatinine ratio, whereas the non-SGLT2 group showed minimal reduction, with a p-value of <0.05. Conclusion: It is concluded that this study highlights the substantial benefits of integrating advanced therapies such as SGLT2 inhibitors into DKD management.