A normal sex life is an important part of life and relationships. Diabetes mellitus (DM) is an important cause of sexual dysfunction both in men and women. This problem is more difficult to diagnose and treat in women than in men because of the intricacy of the female sexual response. Also, the literature is limited addressing female sexual dysfunction (FSD) in DM, and this aspect of female health, is often ignored in clinical practice in women with DM. Early screening, diagnosis, and appropriate counseling are the cornerstone for managing FSD in women with DM. The current review aims to update the scenario of prevailing sexual dysfunction faced by the women with diabetes, their etiology, diagnostic approaches, and its management.