Aim: To determine the prevalence and risk of anemia in type-2 diabetes mellitus. In addition, the incidence and risk of anemia in these patients were assessed according to gender and glycemic control status. Methods: The study group comprised 200 patients with type-2 diabetes. Patients were divided into groups according to glycemic control and gender. Glycated hemoglobin (HbA1c), blood glucose level, hemoglobin concentration, mean corpuscular volume (MCV), mean corpuscular hemoglobin (MCH) and mean corpuscular hemoglobin concentration (MCHC) of subjects were evaluated. The presence of anemia was defined by a hemoglobin level <13.0 g/dl for men and <12.0 g/dl for women. The patients were considered as diabetic if he/she had glycated hemoglobin >6.5%, fasting blood glucose >126 mg/dl and random blood glucose >200 mg/dl. Result: 63% of diabetic patients had anemia. There was higher incidence and risk of anemia in females (36%) as compared to males (27%) (p < 0.05) and in poorly controlled diabetes HbA1C >7.5% (49.5%) compared to those with controlled diabetes HbA1C < 7.5% (13.5%) (p < 0.05). Conclusion: This study indicated that poor glycemic control and gender difference are associated with the incidence of anemia in type II diabetes. Our findings suggest the need of screening for anemia in diabetes outpatient clinics. Routine hematological tests along with blood glucose level should be mandatory in order to make therapeutic decisions for the treatment of anemia in type II diabetes mellitus.