Diabetes mellitus is the leading cause of end- stage renal disease (ESRD) worldwide. Diabetic nephropathy is characterised by early hemodynamic changes which finally leads to renal insufficiency. Syndecans are type1 transmembrane heparan sulphate proteoglycans (HSPGs) that have important roles during development, wound healing and tumour progression by controlling cell proliferation, differentiation and migration. Our aim was to compare and correlate the levels of serum Syndecan-1 in type2 diabetes mellitus with microalbuminuria and without microalbuminuria. Blood samples were collected from 200 patients out of which 100 patients were without microalbuminuria and 100 patients were with microalbuminuria. Serum Syndecan-1 levels were analysed by ELISA method. Syndecan-1 levels were significantly higher in patients with microalbuminuria (147.30±80.27) compared to patients without microalbuminuria (59.38 ± 27.79). There was a positive correlation between syndecan-1 and patients with microalbuminuria(r=0.570, p<0.001). The findings showed that increased serum levels of syndecan-1 in type2 diabetes mellitus suggest it may have a role in pathogenesis of diabetic nephropathy.