Background and Objective: Diabetic nephropathy is the most common cause of microvascular chronic complication of Type 2 diabetes mellitus (T2DM), which is associated with considerable morbidity and mortality. Chronic kidney diseases (CKD) may result from diabetes mellitus (34%), hypertension (29%), glomerulonephritis (14%), and others (23%). The present study was undertaken to explore the possibility of the serum cystatin C level as a marker of early renal impairment in T2DM patient. Materials and Methods: The study was conducted in 75 patients of T2DM and 75 healthy individuals were included as control in this study. After 12 h fasting, 8 mL venous blood sample was collected and allowed to clot for h and serum was separated. Lipid profile and cystatin C level of serum were measured by using commercially available kit of auto analyzer. Results: The level of serum cystatin C was significantly increased in T2DM patients as compared to control. In T2DM patients, high-density lipoprotein cholesterol significantly decreased (P < 0.001), while other parameters of lipid profile were significantly increased (P < 0.001) as compared to control group. Conclusion: Present study suggests that cystatin C measurement in serum is a useful, practical, noninvasive tool for the evaluation of renal involvement in the course of diabetes, especially patients, and the study also shows significant lipoprotein abnormalities in T2DM patients when compared to control.