Rheumatoid arthritis is an autoimmune disease, causing chronic inflammation of small joints in hands and feet. The chronic inflammation and corticosteroid use in rheumatoid patients predispose them to insulin resistance and diabetes. Hydroxychloroquine, a proven drug in rheumatoid arthritis, seems to be beneficial in diabetes and also reduces the risk of cardiovascular events. This study was done to find out the role of hydroxychloroquine on the glycemic status and lipid profile in Rheumatoid patients having treatment with Diabetes mellitus. 50 patients with both RA and DM in the middle age group were categorized into HCQ and Non-HCQ group. Both the groups were followed up for 6 months. Their glycemic status and lipid profile were compared by measuring FBS, PPBS, HbA1C, triglycerides, total cholesterol, VLDL, LDL and HDL. Statistical analysis was done by student t test. The mean FBS, PPBS, HbA1C values in HCQ Group patients decreased significantly from 155.16, 200.12 and 8.26 to 135.80, 174.60 and 7.49 respectively in the follow-up period. In the Non-HCQ group, there was no significant change in mean FBS and PPBS after 6 months. Mean HbA1C increased from 8.13 to 8.33 in Non-HCQ group. Triglycerides, total cholesterol, VLDL and LDL also were found to be reduced in patients who had taken HCQ. In Rheumatoid patients with diabetes, use of HCQ improves their glycemic status and reduces the lipid abnormalities.