Background: Diabetics are burdened with glycemia and an decreased haemoglobin value also contributes, to increase the risk of development and also progression of micro vascular and macro vascular complications of diabetes. Objectives: To study incidence of anaemia in diabetics with normal renal function, in comparison to non- diabetics who have normal renal function. Design: An analytical cross sectional study comparing diabetics with normal renal function and non-diabetics with normal renal function. Settings : It was conducted in hospitals attached to KMC Mangalore between September 2016 to July 2018. Group 1 - Diabetics as per ADA criteria. Group 2 - Non diabetics (RBS < 200). Materials and Methods: The estimated glomerlular filtration rate (eGFR) was calculated using Cockcroft-Gault Equation. Only those with eGFR>60 ml/min were included. Using the WHO criteria, the prevalence of anaemia was checked for. Duration of diabetes and prevalence of anaemia was correlated. Sample Size: The sample size was 100. Both groups had 50 cases. Results: In our study it was seen that 56 % of the diabetics were anaemic as compared to only 30 % of the non-diabetics. The p value was 0.0001. The odds ratio calculated showed that diabetics were 2.97 times more likely to have anaemia as compared to non-diabetics. Anaemic patients had an average of 9.68 years of diabetes. The non anaemic patients had an average of 6.32 years of diabetes. The p value was 0.038. The mean glycated haemoglobin amongst the anaemic patients was 7.2 and 6.9 amongst non anaemic patients. The p value was 0.450. The most common type of anaemia amongst diabetics was found to be normocytic normochromic anaemia. Amongst the non-diabetics microcytic hypochromic anaemia was the most common. Conclusion: In our study it was seen that even in the absence of renal failure, the prevalence of anaemia was higher amongst diabetics as compared to non-diabetics. Longer duration and poorer control diabetes was also associated with a higher prevalence of anaemia. Limitations: Iron studies, Red cell indices were not done. Diabetic complications were not studied.Kidney size was not assessed by Ultrasound. Conflicts of Interest: It was a self-sponsored study.