Osteoporosis is a systematic bone disorder characterized by bone mass loss and bone tissue architectural degeneration. The incidence of osteoporosis in women increases with age, reflecting the considerable increase in bone loss rate in postmenopausal women once estrogen loses its protective influence. The purpose of this study was to determine the levels of Osteocalcin, Vitamin D, and other parameters that influence bone quality and increased bone fragility in postmenopausal Iraqi women with type 2 diabetes mellitus (T2DM). The levels of vitamin D receptor and vitamin D binding protein in serum are studied for the first time in our study. The present study included 89 postmenopausal women aged 50-70 years old, 62 T2DM patients, and 27 controls. Ten of the T2DM patients were considered osteoporotic, 28 were considered osteopenia, and 22 were normal; this classification is according to the WHO criterion. After matching for body mass index (BMI) and age for patients and controls, results show a significant difference in serum Osteocalcin, vitamin D, and vitamin D binding protein levels in patients compared to controls. In our study, diabetic patients appear with high levels of Osteocalcin, vit.D, and vitamin D binding protein compared with non-diabetic control. The processes underlying diabetes mellitusinduced skeletal problems are unknown. Anti-diabetic medications might have an adverse or favorable effect on bone metabolism. The study concludes that managing skeletal health in postmenopausal women entails screening fracture risk factors, lowering modifiable risk variables through dietary and lifestyle modifications, and using a pharmacologic treatment for individuals at high risk of osteoporosis or fracture. Women with osteoporosis must be managed for the rest of their lives.