As the global epidemic of type 2 diabetes continues unabated with the associated increasing socioeconomic burden, attention is increasingly turning to the important issue of prevention. Type 2 diabetes is one part of the broader medical paradigm associated with cardiovascular disease—the metabolic syndrome. Population‐directed prevention is aimed at reducing the risk factor burden in both the general population and susceptible communities or ethnic groups. To date, there has been limited attention paid to dealing with the foreseen epidemic of type 2 diabetes. Targeted prevention involves higher intensity intervention strategies aimed at subjects with impaired glucose tolerance and impaired fasting glucose (prediabetes). There are now four major studies investigating lifestyle intervention in subjects with impaired glucose tolerance and all have shown significant reduction in progression to type 2 diabetes. Over the last 20 years there have been a number of targeted pharmacological intervention studies in subjects reported, with mixed results. Recently troglitazone, acarbose, and metformin have been shown to reduce progression to diabetes. There are now large targeted studies underway, examining the possible prevention of diabetes with ramipril, rosiglitazone, nateglinide, valsartan, and insulin. Whether lifestyle strategies or pharmacological intervention will also reduce cardiovascular outcomes is unknown. Possible but speculative mechanisms for diabetes prevention with pharmacological interventions are discussed. Many other issues remain to be addressed and these are the following: (1) How best to implement risk factor reduction (behavioral modification) in the population at large, in susceptible communities and ethnic groups? (2) How to achieve and maintain lifestyle changes targeted at prediabetic subjects? (3) What is the long‐term value and safety of pharmacological treatment of otherwise asymptomatic prediabetic subjects? (4) Are there benefits of combination therapies with lifestyle and pharmacological interventions in prediabetic individuals? (5) What are the socioeconomic costs and benefits, including cardiovascular protection, of implementing diabetes prevention programs?