Introduction: Drug utilization studies provide useful insights into the current prescribing practices and also identify irrational prescribing. Diabetes mellitus is a metabolic disorder characterized by resistance to the action of insulin, inadequate insulin secretion, or both. Material and Methods: This is a prospective and observational study was conducted over a period of 6 months in the outpatient Departments of General Medicine and Department of Pharmacology, a tertiary care teaching hospital. Adult diabetic patients (either newly diagnosed or known cases) of either sex, who were prescribed at least one anti-diabetic medication (OHA/Insulin), were included in the study. Details about demography, medical history, diagnosis data, and duration of diabetes, family history of diabetes, co-morbid conditions, laboratory investigations, and anti- diabetic drug utilization were collected. The adverse drug reactions (ADRs) related to antidiabetic drugs were monitored and documented in suitably designed ADR monitoring forms. Results: In our study shows that mono and combination therapies for the treatment of type II DM. The present study revealed that most of the physicians initially prescribed mono therapy (40%) includes Metformin/Glibenclamide/Glimepiride/Gliclazide to control hyperglycaemia followed by dual therapy (35%) FDC of Metformin + Pioglitazone/Metformin + Glipizide/Metformin + Glimepiride/ Metformin + Saxagliptin/ Metformin +Voglibose and triple therapy (25%) includes Metformin + Glimepiride + Pioglitazone. Conclusion: In our study, males were found to be more affected by type 2 diabetes mellitus than females. In the study, the prescribing trend was found to be monotherapy followed by dual agents because of presence of higher incidences of co-morbidities. Among oral antidiabetic agents, metformin along with glimepiride was most commonly used combination.