Aim: To correlate hsCRP with urine albumin and urine creatinine ratio in patients of Type2 Diabetes Mellitus with and without Diabetic Nephropathy. Material and Method: This prospective case control study was conducted among 200 patients (100 Patients of Diabetes without Nephropathy and 100 with nephropathy) in MMC Hospital, Muzaffarnagar. The clinical and demographic profile at the time of admission in the medicine ward including the age, sex, associated chronic illness like hypertension and hyperlipidemia was recorded for all study subjects. Venous blood samples were collected and sent to laboratory where hsCRP was measured by immunoturbidimetry method. A spot urine sample was taken and urine albumin creatinine ratio was calculated by Immunoturbidimetry and Spectrophotometry method in the biochemistry laboratory. Results: Mean hsCRP in patients without nephropathy was 1.691 mg/L and Mean hsCRP in patients with nephropathy was 9.522 mg/L. Mean fasting blood sugar in patients with nephropathy was 185.22mg/dl. Mean hsCRP in patients with macroalbuminuria was significantly more as compared to subjects without macroalbuminuria. Conclusion: In conclusion, Hs-CRP exerts an important diversity of actions implicated in diabetic nephropathy, from development of the initial stages of diabetes to progression to renal failure.