Introduction: An important consequence of the aging of people with DM2 is physical disability, particularly the loss of mobility. Objective: To determine sociodemographic, clinical-functional, and psycho-cognitive factors related to the reduction in hand grip strength (HGS) in elderly patients with type 2 diabetes mellitus (DM2) and to verify the relationship between HGS and fragility. Method: This is an observational cross-sectional study with 156 elderly individuals aged 60 years and over, both male and female, diagnosed with DM2. The participants were assessed according to sociodemographic, clinical-functional, psycho-cognitive, and functional mobility data. HGS was evaluated using a manual dynamometer. The tests performed were: Mann-Whitney or Kruskal-Wallis, and Chi-square. The level of significance was set at 5% (p < 0.05). Results: A significant relationship was observed between HGS and each of the following: sex (p < 0.001), age range (p = 0.04), marital status (p = 0.004), physical activity (p = 0.06), number of conditions diagnosed (p = 0.002), use of insulin therapy (p = 0.03), complaint of pain in lower limb power (p < 0.001), falls in the last year (p = 0.004), fear of falling (p = 0.003), Mini-Mental State Examination (p = 0.01), Geriatric Depression Scale (p = 0.008), fragility phenotype (p < 0.001). Conclusion: HGS was reduced in elderly women with DM2, those who did not have a marital life had five or more diseases diagnosed with insulin therapy, did not engage in regular physical activity, complained of lower limb pain, had a history of two or more falls in the last year, had a fear of falling, had a cognitive deficit, had depressive symptoms, and were fragile.