Background: Several epidemiological studies identify hyperuricemia is an independent risk factor for the development of cardiovascular disease and renal disease, particularly patients with hypertension or congestive heart failure and in women. In the present study to investigate the level of serum uric acid in Type 2 diabetes mellitus and pre-diabetics in south Indian population. Methods: Uric acid level was measured by Uricase-PAP methodology in patients with Diabetes (n=50)/Pre diabetes (n=50). Using Chi Square test, uric acid levels in the above two groups were compared based on age, sex and other factors which can affect uric acid level. Results: The mean serum uric acid level was lower in type 2 Diabetes Mellitus patients compared with Pre-diabetic patients. P value comparing type2 diabetes mellitus and pre-diabetes was < 0.001. Conclusion: The serum uric acid level being higher in pre-diabetes than diabetes mellitus may serve as a potential inexpensive biomarker of deterioration of glucose metabolism.