Several studies have indicated that asymptomatic bacteriuria (ASB) is a frequent condition in diabetics and may lead to more severe urinary tract infections (UTIs). This study was conducted to determine the frequency of ASB in patients with type 2 diabetes mellitus as well as the identification of the bacterial etiology of ASB in addition to the antibiotic sensitivity profile in a group of Iraqi patients. A total of 100 individuals were included in this study, 50 diabetic outpatients and 50 non-diabetics as a control group. Mid-stream urine specimens were collected from patients and tested using the urine dipstick test, microscopy and culture tests. It was shown that 90% of diabetic patients were culture positive and 10% were culture negative for bacteria. On the other hand, it was observed that 90% of non-diabetics had no bacterial growth in their urine specimens. The most isolated organisms were Staphylococcus aureus (34%), Enterobacter aerogenes (28%), and Klebsiella spp (10%). It was observed that S. aureus was completely resistant to ampicillin (100%), while only 30% of these isolates were resistant to ciprofloxacin. It was noted that S. aureus was the most isolated in the study, which is a clear change in the spectrum of the causative agent of these cases. Given the high prevalence of ASB in patients with type 2 diabetes, this study recommends that the diagnostic program for diabetic patients should include bacterial culture of their urine specimens to determine the antimicrobial resistance of isolated bacteria.