Introduction: About 20-40% of Type 2 Diabetic patients are affected by Diabetic nephropathy, a microvascular complication of Diabetes Mellitus.To prevent the disease, it is requisite to identify the individuals at higher risk of development of Diabetic nephropathy. Glomerular hypertension instigated by increased activity of Renin angiotensin System assumed to contributes majorly for the development of Diabetic nephropathy.287 bpAlu repeats either inserted or deleted in the 16th intron of ACE gene, which causes 3 genotypes of ACE insertion/deletion gene polymorphism; II, ID andDD. Aim:The present study was designed to detect the association of ACE gene polymorphism and Diabetic nephropathy Materials and methods: A total of 100 Type 2 DM patients, who have diabetes for at least 10 years were recruited in this study and divided in two groups; without nephropathy (n=42) and with nephropathy (n=58). ACE genotyping was performed from the DNA extracted from WBCs, which is amplified by PCR and distinguished by gel electrophoresis. Genotypes described as I/I-490 bp, I/D-490+190 bp, and D/D-190 bp on electrophoresis. Result: 50% (n=29) of DN patients compared to 23.80% (n=10) ofnon-nephropathic patients had DD genotype. Univariate analysis showed significant association of ACE DD homozygote with diabetic nephropathy. Odd ratio in the development of diabetic nephropathy with DD genotype was 3.20. Conclusion: Study showed association of I/D polymorphism of ACE gene with Diabetic nephropathy in Type 2 Diabetes Mellitus patients. The risk of development of nephropathy increases with DD genotype in comparison with ID and II genotype.