Objective This study aims to measure the prevalence of diabetic neuropathy (DN) in patients with type 1 and type 2 diabetes mellitus (DM) and to explore the impact of DN on quality of life (QoL) in type 1 and type 2 DM patients in Al-Ahsa, Saudi Arabia. Methods This cross-sectional study targeted type 1 and type 2 DM patients who live in Al-Ahsa, Saudi Arabia. Self-reported online questionnaires distributed randomly on social media were used. The survey included three parts: sociodemographic data, the Self-Administered Leeds Assessment of Neuropathic Symptoms and Signs (S-LANSS) questionnaire, and the modified Arabic Diabetes Quality of Life (DQoL) questionnaire. The data have been collected from April 2022 to May 2022. Results The study included participants (n = 329) of both type 1 and type 2 DM. Patients' age ranged from 18 to 82 years with a mean age of 45.9 ± 15.2 years. A total of 166 (50.5%) patients were males and 319 (97%) were Saudi nationals. The prevalence of DN in the study population was 44.1%. Of the patients with DN, 73.1% have low QoL, which means DN increased the risk of low QoL by about four times (OR = 3.9; 95% CI: 2.5-6.3). Conclusion In conclusion, the study showed that the prevalence of DN in Al-Ahsa, Saudi Arabia was 44.1%. The presence of DN was associated with reduced QoL. Type 2 DM, low educational level, and the presence of other comorbidities were significantly associated with low QoL.