Background: Type 1 diabetes mellitus represents a prevalent chronic endocrine and metabolic disorder affecting a significant proportion of pediatric and adolescent populations, with a rising incidence of diagnoses annually. Myopathy, or diabetic skeletal muscle disease, is a prevalent clinical manifestation in type 1 diabetic persons. This study was conducted to compare manual dexterity and hand strength between diabetic children and their healthy peers. Methods An observational cross-sectional study of one hundred-twenty children from both sexes who were divided into two groups: the study group including sixty diabetic children (29 girls and 31 boys) and the control group including sixty non-diabetic children (31 girls and 29 boys). A laboratory investigation of the standardized hemoglobin A1c (HbA1c) test was conducted on the children in all groups. The Bruininks-Oseretsky Test of Motor Proficiency, second edition, was utilized to measure manual dexterity, the Baseline Mechanical Pinch Gauge was utilized to assess pinch strength (tip, tripod, and key strength), and the JAMAR hand-held dynamometer was utilized to evaluate hand grip. Results: There were significant decreases in hand grip, tip to tip, tripod, and key strength and manual dexterity of the diabetic group compared with that of the non-diabetic group. Conclusion: Type 1 diabetes has an effect on hand grip, tip to tip, tripod, and key strength and manual dexterity in children aged from 6 to 8 years.