Diabetes and Obesity are major health problems worldwide. Obesity and Diabetes are interrelated. Visceral adiposity is well correlated with insulin resistance, metabolic syndrome and cardiovascular diseases. Visceral Adiposity Index (VAI) is calculated using anthropometric and laboratory data and Visceral Fat is measured radiologically here. Following study evaluated the correlation between them. OBJECTIVE To study correlation of visceral adiposity index with visceral fat in obese patients with and without type 2 Diabetes Mellitus. METHODS Study Design: An observational cross sectional comparative study was conducted which included total 60 obese patients with BMI ≥ 25 kg/m2, of them 30 had type 2 diabetes mellitus (DM) and 30 were non diabetic (NDM). All were aged >40 years with no history of malignancy or any abdominal surgery. METHODS Patients fulfilling inclusion criteria were included in the study after taking informed written consent. Physical examination and anthropometric measurements were done. Blood investigations included Lipid Profile [Total Cholesterol (TC), Serum Triglycerides (TG), High Density Lipoprotein Cholesterol (HDL), Low density Lipoprotein Cholesterol (LDL)], HBA1c, Fasting Blood Glucose (FBS) and Post-Prandial Blood Glucose (PPBS). Liver Kidney Space (LKS) measured by ultrasonography was taken as a parameter for Visceral Fat (VF). VAI was calculated using the necessary formula. RESULTS Mean VAI in DM group was 2.71±1.18 and in NDM group was 2.39±0.58. Mean VF(LKS) in DM group was 4.19±0.27 mm and in NDM group was 4.03±0.29 mm. VAI was significantly higher in females. There was significant correlation (p<0.05) of VAI with VF(LKS) in whole population, in DM group and in NDM group. No significant difference was seen in both DM and NDM in terms of VAI and VF(LKS). LKS was significantly correlated (p<0.05) with Weight, BMI, Waist circumference, FBS, TC, TG, HDL, LDL in whole population, DM and NDM group, with PPBS and HBA1c in whole population and in DM group and with height in NDM group. There was significant correlation (p<0.05) between VAI with PPBS and HBA1c in DM group. CONCLUSIONS VAI and VF(LKS) were well correlated in whole population as well as in both DM and NDM group individually but there was no significant difference between DM and NDM groups. We need large population multicentric study for better assessment and its use in clinical practise.