Adequate muscle strength is required for optimum productivity and low muscle strength is a predictor of physical limitations. Individuals with long-standing type 2 diabetes mellitus have been found to have an increased risk of developing functional disabilities. Handgrip strength is a reliable measurement of the disability index. This study was designed to determine the effect of type 2 diabetes on handgrip strength in adults. Twenty adult patients with a clinical diagnosis of type 2 diabetes mellitus (10 males, mean age: 52.9 ± 9.01 years and 10 females, mean age: 52.6 ± 5.71 years) and 20 apparently healthy adults (10 males, mean age: 53.1 ± 8.94 years and 10 females, mean age 54.5yrs±5.56 years) who met the inclusion criteria participated in the study. Handgrip strength was measured with an isometric hand dynamometer and comparisons were made between diabetic and non-diabetic males as well as between diabetic and non-diabetic females. Thev independent t-test were used to analyse the significance difference in hand grip strength between the diabetic and the non-diabetic subjects (p=0.05). Results showed significant differences in the mean handgrip strength between the male diabetic and nondiabetic subjects (p<0.004), as well as between the female diabetic and non-diabetic subjects (p<0.002). Long-standing type 2 diabetes mellitus seems to result in a decrease in handgrip strength in both male and female adults. This physical limitation may contribute to low productivity in people with type 2 diabetes mellitus.