AimsO‐Linked β‐N‐acetylglucosamine (O‐GlcNAc) modification, a unique post‐translational modification of proteins, is elevated in diabetic nephropathy. This review aims to summarize the current knowledge on the mechanisms by which O‐GlcNAcylation of proteins contributes to the pathogenesis and progression of diabetic nephropathy, as well as the therapeutic potential of targeting O‐GlcNAc modification for its treatment.MethodsCurrent evidence in the literature was reviewed and synthesized in a narrative review.ResultsHyperglycemia increases glucose flux into the hexosamine biosynthesis pathway, which activates glucosamino‐fructose aminotransferase expression and activity, leading to the production of O‐GlcNAcylation substrate UDP‐GlcNAc and an increase in protein O‐GlcNAcylation in kidney cells. Protein O‐GlcNAcylation regulates the function of kidney cells including mesangial cells, podocytes, and proximal tubular cells, and promotes renal interstitial fibrosis, resulting in kidney damage. Current treatments for diabetic nephropathy, such as sodium‐glucose cotransporter 2 (SGLT‐2) inhibitors and renin–angiotensin–aldosterone system (RAAS) inhibitors, delay disease progression, and suppress protein O‐GlcNAcylation.ConclusionsIncreased protein O‐GlcNAcylation mediates renal cell damage and promotes renal interstitial fibrosis, leading to diabetic nephropathy. Although the full significance of inhibition of O‐GlcNAcylation is not yet understood, it may represent a novel target for treating diabetic nephropathy.