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Background: Depression is most common among psychiatric disorders and with well documented impact on diabetes mellitus outcome. Aims: To assess psychosocial profile and prevalence of depression in subjects with complicated and uncomplicated diabetes mellitus. Methods: This is a cross sectional study of 80 subjects, categorized into two subgroups of diabetes and were administrated ICD 10 criteria for depression after taking informed consent. The sociodemographic profile and psychiatric morbidity of the two groups were analyzed statistically. Results: Statistically significant differences were found between the two groups in sociodemographic factors like age, marital, educational, socioeconomic, employment status and living situations. All the symptom variables of depression with exception of decreased appetite had shown ‘p‘ value of 0.001 which was highly significant suggesting significant presence of depression and meeting criteria for depression in complicated group when compared with uncomplicated group. The prevalence of depression was found to be 72.5% in complicated group and 15% in uncomplicated group. Conclusion: Depression is common co morbidity in diabetes mellitus. The determinants of psychosocial demographic factors influence the outcome of diabetes mellitus.