Introduction: Diabetes mellitus (DM) refers to a group of common metabolic disorders that share the phenotype of hyperglycemia. Low magnesium status has repeatedly been demonstrated in patients with type 2 diabetes. Magnesium deficiency appears to have a negative impact on glucose homeostasis and insulin sensitivity in patients with type 2 diabetes. The present study was undertaken with an aim to correlate serum magnesium levels with diabetic nephropathy. Materials and methods: Total 100 patients with type 2 diabetes of 5 years of duration and above, admitted in Dr. Pinnamaneni Siddhartha Institute of Medical Sciences and Research Foundation from November 2015 to April 2017 were included in the study. Results: The mean serum magnesium value in the normal group was 1.78, the microalbuminuria group was 1.61, and in macroalbuminuria, the group was 1.52. Discussion: One of the possible mechanisms explaining the relation between diabetic nephropathy and magnesium deficiency is insulin resistance. Deficiency of magnesium can reduce tyrosine-kinase activity, post-receptor activity and eventually it may contribute to the development of insulin resistance. Hypomagnesemia independently predicts the progression to ESRD in patients with advanced type 2 diabetic nephropathy.