We studied the utility of pancreatic magnetic resonance imaging (MRI) in 72 thalassemia major patients (21 diabetic, 51 normoglycemic). Diabetic patients were significantly older (p<0.0001) and had smaller pancreas volume (p<0.0001). The two groups were comparable for ferritin and MRI-T2* heart, liver and pancreas. Pancreatic T2* signals were abnormal in 80% of both groups, and correlated with heart T2*. In normoglycemic patients, cardiac T2* and log-pancreatic T2* values correlated with homeostatic model assessments HOMA-B ( cell reserve), HOMA-IR (insulin resistance) and fasting insulin/C-peptide levels. This suggested that improved chelation may improve  cell reserve and prevent pancreatic atrophy.