Background: A high prevalence of hypogonadism among men with type 2 diabetes mellitus (T2DM) has been reported worldwide. This in turn creates a substantial public health burden in terms of inadequate sexual function and potential infertility. However, the status of this health problem is not well established in Ethiopia. Therefore, this study was aimed to assess hypogonadism and its associated risk factors among men with T2DM. Methods: This cross-sectional study was conducted at Tikur Anbesa Specialized Teaching Hospital in Addis Ababa, Ethiopia from February to May 2017 on 115 male patients with T2DM aged 40-80 years. Symptoms of hypogonadism were assessed using the Androgen Deficiency in Aging Men (ADAM) questionnaire. Total testosterone (TT), luteinising hormone (LH) and follicle stimulating hormone (FSH), fasting blood glucose (FBG) and lipid profiles were measured at the clinical chemistry laboratory of Ethiopian Public Health Institute. Hypogonadism was defined as the presence of clinical symptoms and low TT [TT < 12.1 nmol/l] according to International Society for the Study of the Aging Male. Results: Of the total 115 study subjects, hypogonadism was seen in 23.5%, of whom 74.1% and 25.9% had secondary and primary hypogonadism, respectively. TT showed a significant negative correlation with waist circumference (WC) (r = −0.465, p < 0.001), BMI (r = −0.363; p < 0.001), FBG (rho = −0.328, p < 0.001) and TG (rho = −0.357, p < 0.001) respectively but a significant positive correlation with HDL-C (r = 0.339, p < 0.001)]. WC and FBG were independently associated with hypogonadism. Conclusion: According to our study, visceral obesity and hyperglycaemia were found to be independent risk factors associated with hypogonadism.