Diabetes is a major cause of morbidity and among its complications neuropathies are the most common. Central diabetic neuropathy may lead to delayed evoked potentials in the central pathways. To evaluate the auditory neuropathy in diabetes mellitus ,this study was undertaken in the Department of Physiology and Department of Medicine at Govt. Medical College and Hospital, Amritsar, Punjab during 2008-2009.For this, Brainstem auditory evoked potentials were recorded in patients of type 2 diabetes mellitus divided into three groups based upon the duration of disease. The parameters recorded were absolute latencies of waves I,III and V & Inter-peak latencies(IPL)I-III and I-V. These were compared with age and sex matched controls. The results showed no statistically significant changes in any of the above parameters. This could be attributed to fairly good glycemic control of the patients included in the study. Thus, we conclude that patients with good glycemic control develop no auditory diabetic neuropathy irrespective of the duration of disease. However more studies are required to substantiate these results.