Background: Obesity is one of risk factors for type 2 diabetes because of its association with insulin resistance and poor glycemic control. Sex hormone–binding globulin (SHBG) and adipose tissue hormones have a role in development of insulin resistance, hyperlipidemia and type 2 diabetes. Serum SHBG has a role in glucose homeostasis and low levels are associated with development of diabetes, cardiovascular diseases, insulin resistance and hyperinsulinemia. Aim of  work: to study the relationship between serum SHBG, obesity, and metabolic parameters in type 2 diabetes in both sex. Patients and Methods: forty obese type 2 diabetic patients and ten obese non-diabetic as controls were included in this study. Blood was taking from all subjects for estimation of glucose, Lipid profile, insulin and SHBG. Results: there was highly significant decrease in mean serum SHBG concentration in diabetic group compared with control non diabetic group. There were significant negative associations between serum SHBG and age, disease duration, BMI and glucose. On the other hand, there were non significant correlations between SHBG and waist circumference, fasting insulin, HOMA-IR, cholesterol and triglyceride levels. Conclusion: Low serum SHBG is associated with hyperglycemia in both sexes, independent of insulinemia