Background: Diabetes mellitus (DM) is a major global health concern causing multi-organ complications, with postmenopausal women being particularly vulnerable due to hormonal and metabolic changes. This study aimed to evaluate the association between microalbuminuria and renal function markers in postmenopausal women with type 2 diabetes mellitus. Aim of the study: The aim of the study was to evaluate the association between microalbuminuria and renal function markers in postmenopausal women with type 2 diabetes mellitus. Methods: This cross-sectional study at the Department of Biochemistry, Dhaka Medical College, Dhaka, Bangladesh (July 2014–June 2015) included 100 postmenopausal women with type 2 diabetes to assess the association of microalbuminuria with renal function markers. After ethical approval and consent, fasting blood and morning urine samples were collected to measure glucose, HbA1c, serum albumin, serum creatinine, urinary creatinine, microalbuminuria, and ACR. Data were analyzed using SPSS 21 with t-tests and Pearson’s correlation; p < 0.05 was significant. Results: In 100 postmenopausal women with type 2 diabetes, 78% were microalbuminuria positive. Prevalence was 94.4% with abnormal serum albumin, 100% with raised ACR, and 91.7% with raised serum creatinine. Microalbuminuria correlated strongly with serum albumin (r = –0.750), urinary creatinine (r = –0.762), ACR (r = +0.997), and serum creatinine (r = +0.694), all p = 0.001. Conclusion: Microalbuminuria is strongly associated with renal function markers, highlighting the need for early detection of kidney dysfunction in postmenopausal women with type 2 diabetes in Bangladesh.