Chronic kidney disease (CKD) is one of the complications of diabetes. It is a dangerous disease the high mortality rate.This disease is accompanied with anemia, which is due to an imbalance in the secretion of the hormone erythropoietin. There is no biological factor evaluating the two cases linked to indicate the state of the disease. Hence the need for a vital indicator that helps assesses the deterioration of the disease. A total of 45 diabetic patients with nephropathy complication in different stage from out-patient clinic of the National Centre for Diabetes Treatment and Research, Mustansiriyah University were enrolled in the study. The patients were divided to three groups: (Group A) fifteen patients; normalalbumin-uria (albumin excretion in urine persistently lower than 30 mg/d), fifteen patients with microalbuminuria (albumin 30-300 mg/d), and macro-albuminuria (albumin ˃ 300 mg/d). Serum hepcidin, Fasting plasma glucose, hemoglobin, blood urea and creatinine were measured. There are a significant difference in serum hepcidin levels in control group (66.34±12.4 ng/ml) when compared to diabetic patients (92.41±27.33ng/m). Serum hepcidin also elevated in macro-albumin urea group (195.32±31.16 ng/ml) when compare to other groups. Hepcidin levels elevated in diabetic patients and more increase in macro and micro-albumin urea.