We conducted a comprehensive and in-depth assessment of different dietary protein sources related to type 2 diabetes (T2D) and determined whether the association is mediated by insulin resistance (IR) and β-cell dysfunction in a population-based cross sectional study of 4,427 women and 2,394 men aged 20–74 years in northeast China. We observed that the intake of total protein, animal protein, and red meat protein was positively associated with T2D prevalence in women. Comparing the women in the highest quintile of protein intake with those in the lowest quintile, the multivariable-adjusted odds ratios of T2D were 2.13 [95% confidence interval (CI): 1.18–3.81] for total protein, 2.27 (95% CI: 1.18–4.35) for animal protein, and 1.75 (95% CI: 1.14–2.68) for red meat protein. Mediation analyses indicated that these associations were mediated mainly by the IR as measured by the homeostasis model (HOMA-IR). The proportions via the mediation of HOMA-IR were 29.0% (95% CI: 10.3%–55.5%), 35.0% (95% CI: 12.9%–83.3%), and 17.2% (95% CI: 5.2%–44.8%) for total protein-, animal protein-, and red meat protein–T2D associations, respectively. These findings support the notion that modifying the sources of dietary protein may be potentially applied to prevent T2D.