Aims: This study aims to investigate the incidence rate and risk factors for hypoglycemia among individuals with type 1 (T1DM) and type 2 diabetes (T2DM) in Saudi Arabia receiving insulin treatment. Methods: A cross-sectional study was conducted at Prince Mohammed bin Abdulaziz National Guard Hospital in Al-Madinah Al-Munawarah, Saudi Arabia, from 2023 to 2024. The study included 255 diabetic patients aged 18 to 65 years who met the inclusion criteria. Data was collected using a validated questionnaire administered through phone calls, covering sociodemographic characteristics, diabetes type, medical history, hypoglycemia history, and compliance with treatment. Data analysis was performed using SPSS version 21, employing descriptive statistics and logistic regression analysis to identify significant risk factors. Results: Among the 255 participants, 55.3% reported experiencing hypoglycemia, with higher rates observed in patients with type 1 diabetes (100%) compared to type 2 diabetes (55.9%). The study identified significant associations between hypoglycemia and factors such as age, nationality, residence, marital status, and educational level. Additionally, wrong food diet, missing meals, and inadequate knowledge about diabetes management were common causes of hypoglycemic episodes. Most hypoglycemic events (92.5%) occurred outside of the hospital, with 18.6% classified as serious. Conclusions: The findings reveal a high incidence of hypoglycemia among diabetic patients in Saudi Arabia, with a substantial proportion of severe events occurring outside clinical settings. These results highlight the necessity for improved patient education and monitoring strategies to mitigate the risk of hypoglycemia.