Objective: To study the prevalence of depression among diabetics and their care givers. Methods: A cross sectional hospital based study was conducted by interviewing the selected diabetic patients and their care givers using internationally accepted Beck’s Hopelessness Scale to determine the prevalence of depression. Results: The prevalence of depressive illness was high (52%) not only among diabetics but also among their care givers (44.5%). Diabetics with complications (neuropathy and retinopathy) and on insulin treatment were more likely to be depressed than those without complications and/or on treatment oral hypoglycaemic agents. Conclusion: The high prevalence in the care giver group warrants screening and concomitant therapy.