Nephropathy is considered a foremost cause of morbidity and mortality in patients with type 1 or type 2 diabetes mellitus. Hyperglycemia causes renal injury directly or via hemodynamic alterations. These alterations induce glomerular hyperfiltration, microalbuminuria, mesangial expansion, and GBM thickening and arteriolar hyalinosis. Risk determination has potential importance in the management of Diabetic Neuropathy advancement. In addition to the traditional approaches through albuminuria and glomerular filtration rate for the prediction and monitoring of the rate of damage among diabetic patients, various studies are enduring to identify biomarkers. Recent approaches to treat this disorder emphasize on increased control of glycemia and blood pressure using therapies based on renin-angiotensinaldosterone system blockade. Renal and pancreatic transplantation is considered the best modality. This review of literature focuses on pathogenic factors, risk factors, diagnosis and treatment of diabetic nephropathy.