Introduction: Diabetes has become one of the leading Global health Emergencies and is ranked among the top 10 causes of mortality worldwide. Diabetes mellitus causes a wide range of complications including micro and macrovascular complications like microangiopathy, retinopathy, nephropathy, neuropathy and diabetic foot. HbA1c is considered as the Standard of Care for monitoring type 2 Diabetes Mellitus. We aim to evaluate the common hematological parameters along with inflammatory parameters like neutrophil-lymphocyte ratio and platelet-lymphocyte ratio in patients of type 2 diabetes mellitus. Methods: This was an observational laboratory based cross sectional study in which cases were included from 1st November 2023 to 31st December 2023. Two hundred and thirteen cases were divided into two groups (Diabetic and Non-Diabetic group) based on HbA1c levels and exclusion criteria. All cases were assessed for RBC count, TLC, DLC, Hb, RDW, Hct, NLR and PLR. Data was analysed using IBM SPSS v 29.0.2.0 (20) software and Microsoft Excel. A p value of less than 0.05 was considered statistically significant. Results: The mean age of diabetic and non-diabetic groups were 52.9 years and 50.6 years respectively (p > 0.05) with sex ratio of 1:2.1 and 1:1.7 respectively. There were significant differences in the means of the two groups for hematocrit levels, WBC count, neutrophil count, and NLR with p values of 0.001, 0.018, < 0.001 and < 0.001 respectively. There was no significant difference in the means for other parameters. Conclusion: The study results are consistent with the significant role of inflammation in etiopathogenesis of type 2 diabetes with significant increase in the levels of hematocrit, WBC count, neutrophils and NLR in patients with poor glycemic control. Furthermore, NLR being an easy and cost-effective tool along with its high association with microangiopathic complications, it needs to evaluated meticulously for assessing the prognosis in patients of type 2 diabetes mellitus.