Background: Diabetes mellitus type 2 is considered as one of the leading causes of illness and mortality through over the globe. Diabetic retinopathy, neuropathy, and nephropathy are all effectively screened on a regular basis. Recent research have shown that cognitive deterioration can occur in patients with diabetes and that it can go unnoticed for a long time, implying that routine screening is necessary. Methodology: An observational cross sectional study was conducted among 158 patients with complaint of T2DM aged between 60-79 years of age were found with cognitive impairment on the basis of MMSE score in a tertiary care centre. Detailed history along with laboratory and biochemical data were taken from patients after taking written informed consent and approval of Institutional Ethical committee through the pre-structured questionnaire. Results: Mild cognitive impairment was noted in 88 (55.69%) type 2 diabetes mellitus patients and Normal cognitive function in 70 (44.30%). Those with MCI had higher HbA1c (6.57 ± 1.27 vs. 6.13 ± 1.22), higher FBS (148.34 ± 18.61 vs. 145.25 ± 16.31), PPBS (173.91 ± 42.64 vs. 167.47 ± 38.15) and TNF-α (79.32 ± 8.74 vs. 72.98 ± 6.76), which were statistically significant. The cognitive domains of executive function, naming, attention, language, and memory showed a statistically significant difference between those with Mild cognitive impairment and Normal cognitive function. There were no differences in the mean age, duration of disease, and education level between the groups. Conclusion: The significant prevalence of Mild cognitive impairment in type 2 diabetes patients emphasizes the value of routine screening of cognitive functions. Further research into the link between cognitive impairment and poor blood glucose control is needed to see if improving blood glucose control can assist in enhancing cognitive functions.