Background: The thyroid hormone abnormalities are closely associated with diabetes. Undetected, untreated thyroid dysfunction may impair diabetes control, its early detection. Hence, prompt treatment among diabetics would be beneficial in achieving glycemic control, minimizing cardiovascular risk and improving general well‑being. In this central Karnataka As the data on thyroid disorders in diabetics is limited region, the present study was taken up to estimate the thyroid dysfunction in diabetic patients. Aim: To estimate the thyroid dysfunction in diabetic patients. Material and Methods: Hospital-based cross-sectional study was conducted after obtaining institutional ethics committee clearance, at a tertiary care teaching hospital in Chitradurga, Karnataka, among 100 diagnosed cases of diabetes mellitus. Patients’ lipid, thyroid and diabetic profiles were estimated and were then divided as hypothyroid, hyperthyroid, and euthyroid depending on the thyroid profiles. Results: Out of 100 diabetic patients, 71% were euthyroid, 23% hypothyroid and 6% were hyperthyroid. BMI, waist: hip ratio, TSH were significantly lower (22.3±1.8 Kg/mt2; 0.79±0.18), whereas T3 and T4 were significantly elevated among hyperthyroid patients compared to hypothyroid and euthyroid group. Levels of FBS, total cholesterol, triglycerides, LDL cholesterol and HbA1c were significantly elevated in hypothyroid patients. The mean levels of FBS, total cholesterol, triglycerides, LDL cholesterol and HbA1c were significantly elevated in hypothyroid patients compared to euthyroid group. Conclusion: Unidentified thyroid dysfunction could negatively impact diabetes and its complications and may be one of the prime causes of poor management of type 2 DM. Therefore, there is a need for routine assay of thyroid hormones in type 2 diabetic patients to improve the medical management as well as to reduce the morbidity in them.