Background: Diabetic Peripheral Neuropathy (DPN) is one of the microvascular complications of diabetes, and is responsible for most of the amputations in diabetes. Measurement of Vibration Perception Threshold (VPT) is useful in assessment of peripheral neuropathy. The aim of the study is to study the role and correlation of age, duration of diabetes, fasting plasma glucose, HbA1C, and microalbumin:creatinine ratio with diabetic peripheral neuropathy in known cases of type 2 diabetes mellitus in urban and rural population of Rajahmundry, Andhra Pradesh, India. Methods: Study was done on two groups comprising of 30 cases with normal VPT and 30 cases with abnormal VPT in type 2 diabetes. Age, duration of diabetes, body mass index, fasting plasma glucose, HbA1C, and microalbumin:creatinine ratio were recorded and analyzed. Results: Significant difference in age, duration of diabetes, fasting plasma glucose, HbA1C, and microalbumin:creatinine ratio is observed between groups (P __ampersandsignlt; 0.05). There is significant correlation of age, duration of diabetes, fasting plasma glucose, HbA1C, and microalbumin:creatinine ratio with VPT (P __ampersandsignlt; 0.05) in all cases. Among the correlating parameters multiple regression analysis revealed that age and HbA1C are good predictors of VPT (P __ampersandsignlt; 0.05). Conclusion: Age, duration of diabetes, fasting plasma glucose, HbA1C, and microalbuminuria were associated with DPN in urban and rural population. However age and HbA1C are strong predictors of changes in VPT. There is need to study the prevalence of and other risk factors associated with DPN with a larger sample size in this area.