Diabetic patients are at higher risk for development of heart failure, as diabetic state can lead to systolic heart failure as a result of macro vascular complications. Present study was aimed to study biochemical parameters and diabetic state on mortality and morbidity due to cardiac failure in type 2 diabetic patients at a tertiary hospital. Material and Methods: Present study was hospital based, observational, analytical study, 50 consecutive cases of heart failure with type 2 diabetes (diabetic group) and 50 consecutive cases with heart failure without diabetes (non-diabetic group) were studied. Results: Mean age, gender of patients were comparable in both groups. 37 (74%) patients from diabetic group and 21 (42%) patients from non-diabetic group were obese/over-weight, difference was statistically significant (p- 0.002). On 2D Echo, affected systolic function such as ejection fraction (<20 %, 20-35 % & 35-45 %) were comparable in both groups. & difference was not significant statistically (p > 0.05). 38 patients (76%) in diabetic group and 23 patients (46%) in non-diabetic group presented with evidence of affected diastolic function on 2D Echo , difference was statistically significant (p- 0.01). Mean triglyceride level, mean cholesterol level, mean serum urea level & mean serum creatinine level in diabetic group was more than from non-diabetic group, difference was statistically significant (p < 0.05). Patients had significantly higher length of hospital stay with higher HbA1c subgroups. 8 patients (16%) in diabetic group and 3 patients (6%) in non-diabetic group died & difference was not significant statistically (p > 0.05). Conclusion: Diabetic heart failure patients have a significantly higher likelihood to present with existence of diastolic dysfunction, significantly longer duration of hospital stay and also had a higher chance of death during stay.