Abstract Background: Diabetes mellitus is a chronic disorder characterized by impaired metabolism of glucose and lipids due to defect in insulin secretion or action. The association of obesity with development of type 2 diabetes may be partly mediated by altered secretion of adipokines by adipose tissues which may contribute to development of obesity. It has been reported that reduction in plasma adiponectin level may be related to the elevation of insulin resistance. Aim of Study: This study aimed to evaluate the level of adiponectin in patients with type 2 diabetes mellitus. Subjects and Methods: The current study examined sixty diabetic patients (type 2) with BMI from 30-40kg/m2 and 20 age and sex matched healthy controls with BMI from 20-25 kg/m2 . Statistical Analysis: The data were tested for normality using the Anderson-Darling test and for homogeneity variances prior to further statistical analysis. Results: Adiponectin level was significantly lower in all patients compared to controls. Lipid profile was altered in diabetic patients showing higher levels than in controls. In diabetic patients, adiponectin was significantly positively correlated with High Density Lipoprotein Cholesterol (HDL-C), while it was significantly negatively correlated with HbA1C, cholesterol, Low Density Lipoprotein Cholesterol (LDL-C), triglyceride and micro-albuminuria. Conclusion: Adiponectin plays an important role in the patho-physiology of insulin resistance, diabetes, lipid metab-olism. Reduction in adiponectin level may be related to the elevation of insulin resistance associated with diabetes milletus type II. Adiponectin represents a very important step to understand the mechanism of obesity-induced insulin resistance and atherosclerosis. In contrast to other known adipocyte-derived hormones that are generally increased in obesity, adiponectin concentrations are that serum adiponectin levels were significantly inversely correlated with cholesterol, triglycerides and HbA1c in type 2 DM patients. Decreased in obese individuals. This fact together with the promising results of experimental studies suggests the possibility that adiponectin replacement might become a new pharmacological approach to treatment of insulin resistance and/or atherosclerosis so our recommendations are monitoring of adiponectin level in diabetic patients is a good predictor of glycemic control and should used in follow-up. Insulin serum level in diabetic patients should be measured to evaluate the effect of adiponectin on insulin level.