The prevalence of type 2 diabetes mellitus (T2DM) is increasing globally with obesity as a risk factor for T2DM. Non-surgical and surgical methods are used to treat morbid obesity. Laparoscopic Sleeve Gastrectomy (LSG) is being recognized as an effective independent procedure for treating morbidly obese patients with T2DM by removing the gastric fundus and transforming the stomach into a narrow gastric tube. This paper discusses effects of LSG in T2DM resolution and remission, and its short-term and long-term influence on obese patients with T2DM with making comparison with other types of surgeries to resolve T2DM. LSG seems to have a substantial beneficial influence on T2DM, producing resolution in the majority of patients included in the studies. LSG has gained popularity for its relative operative ease and lower risk profile.