Introduction: Type 2 diabetes mellitus(T2DM) is the most common disease that occurs when the body becomes insulin resistant or is not producing enough insulin. Nearly 30% of type 1 diabetes mellitus (DM) and about 25% of T2DM patients suffer from diabetic nephropathy. It is observed that there is an increase in urinary extraction of albumin i.e. microalbuminuria in the early phase of diabetic neuropathy. In diabetic nephropathy as well as morbidity and mortality by cardiovascular disease, microalbuminuria is one of the early markers. The present study is undertaken to know the presence of microalbuminuria in T2DM cases of Indian population living in central India. Material and Methods: Present cross-sectional study on 212 patients diagnosed with type 2 diabetes mellitus study was done at Govt. Medical College Chandrapur in collaboration with IGMC Nagpur. Criteria laid by American Diabetes Association (ADA) was used to define diabetes. Microalbuminuria was diagnosed if in albumin to creatinine ratio in urine ranged between 30-300mg/g. Results: Prevalence of microalbuminuria in the present study was observed to be 38.2%. Various parameters viz. age, duration of diabetes, fasting blood sugar, blood pressure significantly differed between those who had microalbuminuria vs in those with normoalbuminuria. Conclusion: In our study, 81 patients among 212 patients were diagnosed with albuminuria with the prevalence of 38.2% similar to that reported in a study of southern India. The high prevalence of diabetes in India indicates that it is necessary to detect diabetes early to reduce the burden of diabetic kidney disease in future.