Introduction and Aim: High prevalence of diabetes mellitus makes it crucial to understand the distinctive inflammatory features of COVID-19 infection. Hyperglycemia and diabetes mellitus are independent prognosticators for mortality and morbidity in SARS-CoV-2 infection. This study compares D-dimer and inflammatory markers in COVID-19 patients with and without T2DM during the first wave of the pandemic. Materials and Methods: A retrospective study was conducted at a tertiary care hospital. D-dimer, IL-6, Ferritin, CRP and LDH levels in COVID-19 patients with and without T2DM were compared. D-dimer values were correlated with the IL-6, Ferritin, CRP, LDH and checked for statistical evidence. HbA1c levels were assessed for association of the severity of COVID-19 infection. Results: Serum levels of inflammatory biomarkers of 205 COVID-19 patients were compared in which 106 had T2DM and 99 were non- diabetic. Ferritin and LDH showed statistically significant elevation in diabetic COVID-19 patients. D-dimer showed positive correlation with all the inflammatory markers both in diabetic and non-diabetic COVID-19 patients. HbA1c showed statistically significant positive correlation only with Ferritin in COVID-19 patients with T2DM. Conclusion: Ferritin was significantly associated with severity of diabetes as indicated by correlation to HbA1c. D-dimer, Ferritin, IL-6 and LDH levels were significant in COVID 19 patients having diabetes and those without.