Objective. The association between thyroid dysfunction and Type 2 Diabetes Mellitus has been reported in several studies. This study was done to explore the prevalence of thyroid dysfunction in young (<40 years) patients with type 2 Diabetes Mellitus in Eastern India. Methododology. A retrospective chart review of 120 patients with Type 2 Diabetes Mellitus was done. 120 patients (male 81, female 39) of age <40 years, who fulfilled the diagnostic criteria for Diabetes Mellitus according to ADA (American Diabetes Association) were enrolled and investigated through performance of Thyroid Function Tests (FT4,TSH). Results. Of 120 patients (of less than 40 years of age ), 65.83% of patients had the biochemical features of thyroid dysfunction. In descending order of frequency, we found subclinical hypothyroidism in 43.33% of cases (defined by no symptoms or no clinical features of hypothyroidism but with TSH level in the range of above 5 miu/ml but below 10 miu/ml with normal FT4 level), followed by 9.2% of patients with overt hypothyroidism ( either clinical features or TSH >10 miu/ml or FT4 below normal), 8.3% with subclinical hyperthyroidism (only biochemically low level of TSH< 0.34 miu/ml in this study) and 5% of patients show features of clinical hyperthyroidism (clinical or FT4 level well above normal range along with low TSH). Conclusion. A high prevalence of thyroid dysfunction in young type 2 DM patients suggests evaluation for thyroid disorder for proper management.