Introduction: Serum uric acid has been shown to be associated with an increased risk of hypertension, cardiovascular disease, and chronic renal disease in previous epidemiological studies. However, the association between serum uric acid levels and diabetes mellitus is not clear. This study is aimed to define the relationship between serum uric acid and glucose levels in patients with diabetes mellitus. Methods: It is a duration based case and control prospective observational study including 50 patients of type 2 diabetes mellitus and 50 controls. A detailed history, clinical examination and relevant investigations including serum uric acid and fasting blood glucose were done. Categorical variables were tabulated in frequency with percentage distribution and continuous variables were summarized in mean±SD. Two independent means were compared using the student t-test. The critical levels of significance of the results were considered at 0.05 levels i.e. P<0.05 for statistical significance. Results: The present study showed that there is a mild decrease in serum uric acid levels in patients with Type 2 diabetes mellitus and as the duration of diabetes increases there was decrease in serum uric acid levels. The patients with type 2 diabetes mellitus having poor glycemic control had less levels of serum uric acid. Conclusion: Serum uric acid levels were mildly decreased in patients with Type 2 DM. It was more decreased in patients with Type 2 DM of longer duration and having poor glycemic control. The degree of reduction was directly proportional to the duration of Type 2 DM.