Diabetic Nephropathy (DN) is a chronic and progressive kidney disease that affects 45% of type 2 Diabetes Meletus (DM) and type 1 DM. The aim of this study is to prove the correlation between the CTGF and microalbuminuria and to determine the CTGF cut-off value at which we can diagnose microalbuminuria in DN patients. Our study is cross-sectional study that included 75 patients with T2DM and 25 controls. We classified the patients into three groups; each included 25 patients, group 1, group 2, and group 3; normoalbuminuria, microalbuminuria, and macroalbuminuria, respectively. CTGF samples were collected and prepared according to the manufacturer's instructions. We found a significant difference between all groups regarding all variables (p-value < 0.001) except for age and uric acid (p-value 0.08 and 0.09). Spearman's correlation analysis of CTGF levels with different parameters in T2DM patients showed a significant positive correlation with creatinine, urea, FBG, 2h PPBG, HbA1c, and UACR (p-value < 0.001). Multivariate regression analysis was done to detect the predictors of CTGF expression in diabetic patients, and we found that HbA1c and UACR were the only significant independent predictor of CTGF expression in diabetic patients (P<0.03 and 0.0001). Also, we found that the optimum cut-off value of CTGF for the identification of microalbuminuria = 1.085 Pg/ml with 100% sensitivity and specificity. in conclusion we confirm a significant elevation of CTGF in patients with DN. Also, we confirm that CTGF is considered a sensitive marker for the presence of microalbuminuria in patients with T2DM.