Background: Hepatitis C virus (HCV) is a major cause of chronic liver disease, including cirrhosis and liver cancer. Type 2 diabetes mellitus (T2DM) is a common comorbid condition in approximately one-third of individuals with chronic HCV infection. Objective: This study aimed at assessing the effect of the new direct acting antiviral drugs (DAAs) for chronic hepatitis C (HCV) on glycemic control of type 2 DM. Patients and method: This prospective cohort study was done on 32 diabetic patients with hepatitis C in the Internal Medicine Department, Al-Ahrar Teaching Hospital. The patients underwent history taking, clinical examination and laboratory studies including routine investigations and fasting blood glucose and glycosylated hemoglobin before and after treatment with direct antiviral agents (DDAs). Results: This study comprised 32 patients with diabetes. Their mean age was 57.65 ± 7.67 years. The females constituted (62.5%). There was statistically non-significant difference change before and after treatment regarding TLC, total bilirubin, HcvAb or HBSAG. There was statistically significant change between before and after treatment regarding hemoglobin, platelet count, prothrombin time (all of them increased after treatment), INR, s.creatinine, ALT and AST (all of them decreased after treatment). There was statistically significant difference between PCR1 and PCR 2 before and after treatment. All patients had negative PCR after treatment with complete response to DDAs. There was statistically significant decrease between FBG after treatment while there is significant decrease in HbA1c after treatment. Conclusion: HCV eradication leads to a statistically significant reduction in fasting glucose and HbA1c in patients with type 2 diabetes, which is an indirect indicator of improvement of insulin sensitivity in patients with T2DM.