It was a descriptive cross-sectional study conducted to determine the frequency of depression and association with factors in type 2 diabetics in diabetic clinic of Fauji Foundation Hospital Rawalpindi from 1st January - 30th June 2014. In all 110 diabetic patients were selected using convenient Sampling. Data was collected by using a pre- tested structured proforma. Beck's Depression Inventory (BDI) scale was used to screen depression. There were 20 males (18.2%) and 90 females (81.8%) in this study. Females had more mood disturbances and depression as compared to males, however difference was not statistically significant (p<0.769). 28.2% individuals had mild mood disturbances, while borderline clinical depression was present in 23.6% of study group, 20.9% were having moderate depression and 9.1% were having severe depression, rest 1.2% had extreme depression. Overall 55.5% respondents had depression in this study. Obesity was present in 60% of diabetics, 62.7% were hypertensives and 26.4% had ischaemic heart disease. Depression was statistically significantly associated with hypertension (p< 0.002).