The incidence of diabetes, both type 1 and type 2, is increasing. Health outcomes in pediatric diabetes are currently poor, with trends indicating that they are worsening. Minority racial/ethnic groups are disproportionately affected by suboptimal glucose control and have a higher risk of acute and chronic complications of diabetes. Correct clinical management starts with timely and accurate classification of diabetes, but in children this is becoming increasingly challenging due to high prevalence of obesity and shifting demographic composition. The growing obesity epidemic complicates classification by obesity's effects on diabetes. Since the prevalence and clinical characteristics of diabetes vary among racial/ethnic groups, migration between countries leads to changes in the distribution of diabetes types in a certain geographical area, challenging the clinician's ability to classify diabetes. These challenges must be addressed to correctly classify diabetes and establish an appropriate treatment strategy early in the course of disease for all. This may be the first step in improving diabetes outcomes across racial/ethnic groups. This review will discuss the pitfalls in the current diabetes classification scheme that is leading to increasing overlap between diabetes types and heterogeneity within each type. It will also present proposed alternative classification schemes and approaches to understanding diabetes type that may improve the timely and accurate classification of pediatric diabetes type. K E Y W O R D S delayed diagnosis, diabetes complications, diabetes mellitus, MODY, pediatrics 1 | INTRODUCTION Diabetes is one of the most common chronic diseases in pediatric populations, and, if poorly managed, can result in acute and long-term complications that can significantly affect childhood and reduce productivity in adult years. 1 The incidences of pediatric type 1 diabetes (T1D) and type 2 diabetes (T2D) are increasing for reasons not completely understood, but this may in part be due to the increasing incidence of obesity. 1 The incidences of pediatric T1D and T2D have increased globally. 2-7 In the United States, at the current rate, the number of T1D and T2D cases could triple and quadruple to almost 600 000 and 85 000 US children, respectively, by 2050. 8 Current trends suggest that this increase will disproportionately affect non-Caucasian groups. 9 In the United Kingdom, South Asians are the group with the most dramatic increase. 4 While lower socioeconomic status is a risk factor for pediatric T2D in developed countries, in emerging countries, children from the most affluent families are at highest risk. 6,10 We and others demonstrated that elevated body mass index (BMI), in addition to its well-known association with T2D, is associated with accelerated progression to T1D in children 11,12 and adults. 13 Obesity-induced insulin resistance may render insufficient the already compromised insulin secretion in individuals with islet autoimmunity and thus, trigger clinical diabetes. In addition, obesi...