Aim: To examine the intriguing relationship between quality of life and depression in diabetes mellitus __ampersandsignnbsp;Objectives: a) To estimate the prevalence of clinical depression in patients with type II diabetes mellitus, b) predictive factors associated with depression in patients with type II diabetes mellitus,c) quality of life of the depressed diabetic compared with the non-depressed diabetic. Materials and Methods: The study population consists of patients attending the Medical OPD Kilpauk Medical College and Psychiatric OPD Madras Medical College, Chennai. A total of 185 patients were screened for the study of which 100 patients were included in this study. The control group consists of relatives and care givers accompanying the patients. A total of 105 were screened of which 50 were included in this study as control .Assessment Instruments such as socio demographic profile sheet, disease measures, Backs depression inventory, Ferrans and Power diabetic quality of life index III __ampersandsignndash; 1985 were used. Results: Depressive episode as per the criteria diagnosis was present in 18% of patients with diabetes. Elevation in depressive symptoms on the BDI scales were significantly more common and were present in 36% of patients with diabetes (p __ampersandsignlt;0.00). Among the variables patient__ampersandsignlsquo;s marital status and occupation were found to be highly significant predictors of depression in diabetes mellitus. Poor glycaemic control , family level of stress family history diabetes ,family harmony were found to be significant predictors of depression. Conclusion: The study hypothesised that prevalence of depression is more in diabetics compared to the non-diabetic group. The study established the fact that the odds and prevalence of depression is double in diabetics than in the non diabetic control group. The psychosocial factors play important role in the etiology of depression in individuals with diabetes.This study has identified the prevalence and the independent factors that are associated in depression in individuals with diabetes.