Background: Type 2 Diabetes Mellitus (T2DM) is commonly linked to microvascular consequences such as Diabetic Nephropathy (DN). Vitamin D (VD) affects renal functions, insulin sensitivity and glucose metabolism in addition to regulation of calcium metabolism. The present study was carred out to find the relationship between serum VD levels and Urinary Albumin to Creatinine Ratio (UACR) in T2DM to study the early onset of renal disease in T2DM. Aim & Objectives: This study investigates the correlation between vitamin D levels and UACR in patients with T2DM. Material & Methods: A case-control study was conducted involving 90 subjects, comprising of 45 newly diagnosed T2DM patients and 45 age- and sexmatched healthy controls. Fasting Blood Glucose was estimated by GOD-POD method, Serum vitamin D levels by ELISA and UACR by Kit based dry chemistry method on fully automated Biochemistry analyzer. Results: Patients with type 2 diabetes had substantially lower levels of vitamin D and higher levels of glucose (p<0.0001). The correlation between serum vitamin D levels (ng/mL) and Urine Albumin to Creatinine Ratio (UACR, mg/g) was found to be inverse relation but statistically insignificant with a correlation coefficient of r = -0.152 indicating that lower Vitamin D status is associated with increased urinary albumin excretion. Conclusion: In patients with T2DM lower serum VD levels are significantly associated with elevated UACR indicating a potential link between VD deficiency and the progression of DKD. Monitoring and correcting VD deficiency might offer a therapeutic avenue to mitigate albuminuria and delay the onset or progression of DKD.