Background: There is evidence that obesity worsens the metabolic abnormalities associated with Type 2 DM including hyperinsulinemia, hyperglycemia, hypertension, and hyperlipidemia. Recent studies had showed that diabetes resolve or improve in patients undergoing bariatric surgery. Aim: to evaluate the effect of sleeve gastrectomy on control of blood sugar in type 2 DM through follow up of serum level of glycated hemoglobin (HbA1c) and fasting blood sugar changes with excess body weight loss. Patients & methods: A prospective observational study done between June 2012 and September 2014, at Ain Shams university hospitals, Cairo, Egypt. It included forty morbidly obese patients with type 2 DM. Laparoscopic sleeve gastrectomy was done for all patients. The patients were followed up for postoperative morbidity, weight loss and improvement or resolution of diabetes (using blood sugar & glycated hemoglobin measurement). Results: 40 morbidly obese, type 2 DM patients were included in the study. 28 patients (70%) showed complete resolution of DM while 12 patients (30%) showed improvement. A statistically significant difference was seen between resolved and improved groups regarding the duration of DM (less than 5 years), type of DM medication (better with oral hypoglycemic agents), status of DM control (controlled) and distribution of obesity (central type). Conclusion: Laparoscopic sleeve gastrectomy achieves good short term results in control of type 2 DM. Findings indicated that preoperative glycemic control and duration of the disease and the type of T2DM therapy used are important predictors of remission of the disease for patients who underwent laparoscopic sleeve gastrectomy. Key words: sleeve gastrectomy, type 2 DM, morbid obesity.