Abstract: Angiotensin-I Converting Enzyme (ACE), a major component of the Rennin-Angiotensin System (RAS) regulates the renal hemodymamics of our body. An insertion/deletion (I/D) polymorphism of ACE gene has been implicated in kidney disease, hypertension and cardiac function. In the present study, we investigated I/D polymorphism of ACE gene in 125 subjects of both sexes, consisting of 66 normal controls and 59 type 2 diabetic patients with nephropathy. The allele and genotype frequency were significantly different between the patients with diabetic nephropathy and control groups (p<0.001). In the nephropathic patients, ID and DD genotypes were present in 37.2 and 40.6% of patients respectively as compared to 42.4 and 21.2% in those of control groups. The D allele was present in 55.5% of the nephropathic patients and 44.4% of the normal controls. Therefore, percentage of DD genotype and D allele was significantly higher in nephropathic patients compared to normal controls.