Depression is commonly found as a co-morbid condition in diabetes. The relationship between the diabetes and depression is bidirectional. Coexistence of diabetes and depression is associated with poor symptom control, increased suffering, health care expenditure, disability, decreased quality of life and greater risk of death. Depression in diabetes is under diagnosed and undertreated. Depression adversely effect on both psychological well being and diabetic outcomes. Management of depression in diabetes should be directed toward improving psychological and medical outcomes, and quality of life. Pharmacologic and psychotherapeutic interventions shown to be effective in the management of depression in diabetes, which improve the glycaemic control and reduce the risk of short term complications. Selective serotonin reuptake inhibitors(SSRI), Serotonin norepinephrine reuptake inhibitors, and atypical antidepressants (eg. Buproprion) are preferred pharmacologic interventions for patients with diabetes and depression.