COVID-19 patients with diabetes have greater mortality than those without comorbidities, but the underlying mechanisms remain unknown. This study aims to identify the mechanistic interactions between diabetes and severe COVID-19. Microparticles (MPs), the cell membrane-derived vesicles released upon cell activation, are largely increased in diabetic patients. To date, many mechanisms have been postulated for increased severity of COVID-19 in patients with underlying conditions, but the contributions of excessive MPs in diabetic patients have been overlooked. This study characterizes plasma MPs from normal and type 2 diabetic human subjects in terms of amount, cell origins, surface adhesive properties, ACE2 expression, spike protein binding capacity, and their roles in SARS-CoV-2 infection. Results showed that over 90% of plasma MPs express ACE2 that binds the spike protein of SARS-CoV-2. MPs in diabetic patients increase 13-fold in quantity and 11-fold adhesiveness when compared with normal subjects. Perfusion of human plasma with pseudotyped SARS-CoV-2 virus or spike protein-bound MPs into human endothelial cells-formed microvessels-on-a chip demonstrated that MPs from diabetic patients, not normal subjects, interact with endothelium and carry SARS-CoV-2 into cells through endocytosis, providing additional virus entry pathways and enhanced infection. Results also showed a large percentage of platelet-derived tissue factor-bearing MPs in diabetic plasma, which could contribute to thrombotic complications with SARS-CoV-2 infection. This study reveals a dual role of diabetic MPs in promoting SARS-CoV-2 entry and propagating vascular inflammation. These findings provide novel mechanistic insight into the high prevalence of COVID-19 in diabetic patients and their propensity to develop severe vascular complications.