Introduction: Osteoporosis is a significant public health concern, particularly among postmenopausal women with type 2 diabetes mellitus (T2DM). This study aimed to evaluate the prevalence of osteoporosis and osteopenia in diabetic women compared to non-diabetic controls and identify related risk factors. Materials and Methods: A cross-sectional study was conducted, including 272 postmenopausal women diagnosed with T2DM and 255 age-matched non-diabetic controls. Clinical, demographic, and laboratory data were collected. Bone mineral density (BMD) at the femoral neck and lumbar spine was measured using dual-energy X-ray absorptiometry (DXA). The correlation between osteoporosis and diabetes-related parameters, including HbA1c, insulin therapy, retinopathy, and microalbuminuria, was analyzed. Results: The prevalence of femoral neck osteoporosis was significantly higher in diabetic women (28.3%) compared to controls (16.4%, p=0.001). Lumbar spine osteoporosis was observed in 8.4% of diabetics compared to 7.0% of controls (p=0.05). No significant correlations were found between osteoporosis and HbA1c, microalbuminuria, retinopathy, hypertension, ischemic heart disease, or insulin therapy. Conclusion: Postmenopausal women with diabetes have a higher prevalence of osteoporosis at the femoral neck compared to non-diabetic controls. These findings highlight the need for proactive osteoporosis screening and preventive measures in diabetic women to mitigate fracture risk.