Objective of The Study: To assess C-peptide levels in Cord Blood of Infants born to Diabetic Mothers (GDM and type 2 DM mothers) and to find it’s correlation with the anthropometric measures of the new born. Materials and Methods: The study sample comprised 40 babies born to GDM mothers and 20 babies born to type 2 DM mothers. Controls consist of 30 babies born to non-diabetic mothers .Instituitional ethics committee approval was obtained. Anthropometric measures of the newborn including gestational age, birth weight, ponderal index, length of the babies and head circumference were measured. 10 ml of Cord blood was collected and cord serum was separated and stored at -200C until further analysis. C-peptide levels in the cord serum was measured by ELISA. Result: Significant increase was observed in the serum C-peptide levels in infants born to GDM and type 2 DM mothers. Birthweight, head circumference and other anthropometric measures were also found to be significantly increased in the infants of diabetic mothers and they showed a strong correlation with C-peptide levels. Conclusion: When the mother has type 2 diabetes / gestational diabetes mellitus (GDM), fetal hyperinsulinemia is common despite treatment of disease. This effect is more pronounced in those women with Type 2 DM. This maternal diabetic environment could be a contributing factor for the infants to develop obesity and abnormal glucose tolerance later in life. Therapeutic targets should be aimed at controlling the fetal hyperinsulinemia of GDM which could prevent the development of diabetes in the future.