Background: Hyperuricemia maybe an independent risk factor for renal dysfunction in diabetic patients. On the other hand, albuminuria is considered as an indicator for early stages of diabetic nephropathy. The aim of our study was to find out any association between hyperuricemia and simple renal function tests to detect early renal involvement in type 2 diabetes mellitus for its early treatment and prevention for diabetic nephropathy.Methods: This hospital based cross-sectional study was conducted in 265 patients coming to medicine OPD and IPD in a tertiary care hospital in Assam, India. The subjects included were patients complaining of signs and symptoms of gout with or without Type 2 diabetes mellitus. The subjects were divided into two groups A and B, with and without type 2 diabetes respectively. They were selected randomly under the age group of 20 - 70 years old of both genders. Tests performed were serum uric acid, serum creatinine, blood urea, microalbuminuria, FBS and HbA1c estimated by standard methods.Results: In both diabetic and non-diabetic group, serum uric acid correlated positively and significantly with serum creatinine (>1.3mg/dl), blood urea (>40mg/dl) and microalbuminuria (p<0.05). Though serum uric acid did not correlate with HbA1c and FBS (p>0.05) in both the group. In non-diabetics, males were 6.95 times likely to have hyperuricemia than females.Conclusions: Hyperuricemia may be associated with early onset or incipient nephropathy in both diabetes and non- diabetic patient.