Diabetes mellitus is a multifactorial disorder. Cytokines secreted by the monocyte-macrophage system play a key role in the pathogenesis of type 2 diabetes. Pro-inflammatory cytokine TNF-α is believed to have an important role in the progression of diabetes. The present study was conducted to assess the level of TNF-α and to find its relationship with insulin sensitivity and other indicators of metabolic syndrome among newly diagnosed type II diabetic subjects. 100 diabetic subjects (age; 48.63±0.92, BMI; 28.51±0.52) were included in the study. Four groups were made on the basis of BMI as normal weight, overweight, moderately obese, severely obese subjects. Different demographic parameters as age, BMI, B.P, personal history and socioeconomic status were recorded. Fasting glucose, random glucose, HbA1c and lipid profile were analyzed by chemistry analyzer. Serum insulin and plasma TNF-α levels were assessed by ELISA. Insulin sensitivity and insulin resistance was calculated. ANOVA revealed significant difference between TNF-α among different BMI groups (P<0.05). On correlation analysis, TNF-α was significantly correlated with BMI, WHR and TG (p<0.01).