Background: Evidence on HRQL, employment-related factors and expenditure related factor is extremely rare in central India particularly among rural diabetic population. Objectives: This study was performed to measure the effects and health-related quality of life among patients suffering from healed and unhealed diabetic foot ulcer in the central Indian rural population. Method: This was an observational and cross-sectional survey among 118 diabetic foot ulcer patients of either sex were selected randomly from the patients visiting the routine Surgery OPD of tertiary care centres. A pre-tested structured interview proforma was used to collect demographic, social, familial, treatment-related factors, employment and expenditure details. The 29 types of question item DFS- SF was used to evaluate the health-related quality of life among the same diabetic patients in rural population. For the economic loss, this was calculated by the total value of man-days lost in case of the employed population. Results: The mean __ampersandsignplusmn; SD of total HRQL score for the healed group was 74.86 __ampersandsignplusmn; 12.11, and the unhealed group was 59.92 __ampersandsignplusmn; 15.41. The difference between the mean scores for ulcer duration and sex was 16.75 (95% CI = [-22.66, -10.81]). The median value for the total economic loss was 26000 INR (range of 450 to 42000 INR). Conclusion: The mean HRQL score was statistically significant when compared between healed and unhealed groups. There is a gross economic burden imposed on the family by diabetic foot ulcer which needs greater attention. A multidisciplinary approach is needed to reduce the social and economic consequences of diabetic Mellitus causing severe foot ulcers.