The effect of SGLT2i on kidney function after acute kidney injury (AKI) is unknown. The study population was drawn from a retrospective cohort of Veterans with diabetes mellitus type 2 (DM2) and proteinuria. The study exposure was time-varying use of SGLT2i after an index AKI hospitalization. The two study outcomes were time-to- 1) a sustained decrease in eGFR over at least three months to <60 mL/minute/1.73 m2 and ≥30% below a post-AKI-updated eGFR and 2) recurrent hospitalization with AKI. AKI was defined as a rise in serum creatinine concentration to ≥50% above a moving outpatient creatinine baseline. DM2 was defined by ≥2 billing codes related to DM2 prior to the index AKI; proteinuria was defined by the most recent albuminuria, proteinuria, or urinalysis test. Veterans were required to have a baseline eGFR and an eGFR 3-12 months after the index AKI hospitalization ≥30 mL/minute/1.73 m2. 10,036 Veterans met study inclusion criteria. 2,794 (28%) received a SGLT2i. 775 (8%) had CKD progression and 1,816 (18%) had recurrent AKI over a median follow-up of 1.8 and 1.7 years, respectively, which began one year after the index AKI hospitalization. SGLT2i use was associated with lower risk for CKD progression [adjusted hazard ratio (aHR) 0.72 (95% confidence interval (CI): 0.57-0.91)] and for recurrent AKI [aHR 0.75 (95% CI: 0.65-0.88)]. SGLT2i use was associated with a lower risk for CKD progression and for recurrent AKI among those with diabetic kidney disease and recent AKI.