It has been hypothesized that chronic systemic inflammation predisposes to insulin resistance and type-II Diabetes mellitus in rheumatoid arthritis patients. A previous study has shown that diabetic patients who receive insulin therapy develop rheumatoid factor in the due course due to repeated exposure to foreign antigen and development of antigen-antibody complexes. Materials and methods: 100 subjects who were on both insulin and non insulin medications were chosen for the study. Around 5 ml of blood was withdrawn from them for estimation of rheumatoid factor and the laboratory estimation was done using nephelometry. RA factor value of less than 30 IU/ml was considered negative and above that was taken as positive. Results: Of the 88 subjects studied only 13 had a Rheumatoid factor of above 30 IU/ml and were considered positive. Of the 13 subjects with increased RA factor, 12 were on insulin and one was not on insulin therapy. Test of significance was done using Chi square test and it was found to be significant (P less than 0.05). Conclusions: Hence we conclude that diabetic patients who receive insulin therapy develop rheumatoid factor in the due course due to repeated exposure to foreign antigen and development of antigen-antibody complexes and therefore interpretation of elevated levels of Rheumatoid factor in the setting of Diabetes mellitus has to be done keeping this in mind