Introduction: Diabetes mellitus is a group of metabolic disorders characterized by hyperglycemia resulting from defects in insulin secretion, insulin action or both. The chronic hyperglycemia of diabetes is associated with damage, dysfunction and failure of various organs, especially the eyes, kidneys, nerves, heart and blood vessels. Individuals with type-2 diabetes mellitus are reported to have a 2 to 3-fold increase in the incidence of cholesterol gallstones. Hence the study is undertaken to determine prevalence of gall bladder disorders in diabetic patients and association of different parameters which affect them. Material & Methods: This was a hospital based case-control study carried out during the period of October 2010 to October 2012. Institutional ethics committee approved the study.The study comprised of known or newly diagnosed 101 patients of type-2 diabetes mellitus and 101 age and sex matched controls. Observation & Results: In this study out of 101 cases gallbladder disorders were found in 36 (35.64%) cases. Out of these 26 (25.74%) had gallstones, 9(8.91%) had biliary sludge, 1(0.99%) had cholecystitis. Out of 101 controls gallbladder disorder was found in 9 controls. Out of these 6 (5.94%) had gallstones and 3 (2.97%) had biliary sludge. The mean fasting gallbladder volume in cases was 24.20±2.73 cc and in controls it was 18.96±1.98 cc. The difference in mean fasting gallbladder volume in cases and controls was statistically significant (p<0.05). The mean postmeal gallbladder volume in cases was 12.50±2.2 cc and in controls it was 7.68±1.70 cc, the difference was statistically significant (p<0.05). Also the mean gallbladder motility in cases was 48.53±5.66% and in controls it was 59.73±6.41%, the difference was statistically significant (p<0.05). Conclusion: Present study concluded that gall bladder disease is significantly more prevalent among type-2 diabetics compared to controls. Large, poorly contracting gall bladders are frequent among the type-2 diabetics, regardless of the presence or absence of symptoms of gall-bladder disease. Type-2 diabetic patients with gallbladder disorders are significantly older. Prevalence of gallbladder disorders is significantly more in type-2 diabetic females than in type-2 diabetic males.