The present study aimed at investigating the prevalence and associated risk factors of diabetic sensorimotor polyneuropathy (DSP) in previously diagnosed Type-2 diabetic subjects in Lahore, Pakistan during April, 2013 to June, 2013. The DSP was diagnosed using the Michigan Neuropathy Screening Instrument Score. Blood was collected during the examination for the determination of various serum biochemical determinants. Prevalence of DSP was found to be 31.48% when 2,290 diabetes mellitus Type-2 subjects were screened. The patients with DSP were older (p < 0.05), had longer duration of DMT2 (p<0.01), elevated systolic blood pressure (p<0.05), blood sugar (p < 0.05), HbA1c (p<0.001), cholesterol (p<0.01), LDL (p<0.001), triglycerides (p<0.05) and more obese (p<0.01) when compared with the diabetic patients without clinical DSP. Occurrence of fatty liver was more (p<0.01) frequently seen in the patients with the DSP (87.80%) than having no clinical DSP (83.17%). Multiple logistic regression analysis showed that the DSP was significantly associated with age of the patients (OR:1.40, CI:1.24-1.67), duration of DMT2 (OR:1.24, CI: 1.01-1.35), HbA1c (OR:1.86, CI:1.61-2.05), blood fastening sugar level (OR:1.37, CI: 1.18-1.51) and triglyceride concentrations (OR:1.13, CI: 1.02-1.33). In conclusion, the DSP was considerably higher in DMT2 patients and was significantly associated with age of patients, duration of DMT2, HbA1c, blood fasting sugar and serum triglyceride concentrations. Proper management of DSP needs better management of DMT2.