Diabetic Nephropathy (DN) is a progressive kidney disease associated with diabetes mellitus that may lead to end-stage renal disease. Adiponectin (ADP) is a protein hormone produced by white adipose tissue and has vasoprotective properties. Adiponectin level attributes to and associates with diabetic complications. Herein, we assess the potentiality of detecting ADP level as a DN marker. This study included sixty age and sex-matched subjects which were subdivided into three groups: twenty healthy(control) subjects, twenty type 2 diabetes patients with nephropathy(microalbuminuria 30-300 mg/dL) and twenty type 2 diabetes patients without nephropathy (normoalbuminuria<30mg/dL). Mean serum ADP levels were significantly increased in all patients with type 2 diabetes with or without nephropathy as compared to the control group with higher levels in those with nephropathy. Serum ADP levels were positively correlated with fasting blood glucose, glycosylated haemoglobin (HbA1c), microalbuminuria, serum creatinine and urea. The most independent risk factors for occurrence of microvascular complications may reflect the role of ADP as a predictor and prognostic marker of DN among patients with type 2 diabetes.