Diabetes mellitus is an established risk factor of tuberculosis. Failure of the tubercular treatment outcome is higher among patients who are simultaneously suffering from diabetes. This study aims to observe the treatment outcome of the multi drug resistant tuberculosis patients in respect to their diabetic status. This cross sectional study has been conducted in a tertiary level hospital specialized for the diseases of the chest, during the period of January to December of the year 2019. Ethical approval for the research work has been acquired and informed written consent from the patients has been taken prior conducting the study and data collection. Face to face interview and review of medical records has been undertaken to collect data. Collected data has been analyzed with IBM SPSS software. Among 200 respondents, 53.0% patients showed to have early treatment response whereas, 47.0% had delayed treatment response. Among them, 80 patients were diabetic, where, 82.5.0% showed to have delayed response to the treatment and only 17.5% had early response to the treatment. Out of 120 non-diabetic respondents 77.5% had early response to the treatment and 22.5% had delayed response to the treatment. The treatment outcome of an MDR-TB patient found to be dependent on patient’s gender, age, marital status, monthly family income, history of previous TB treatment and also diabetic status (p<0.05). According to this study, diabetic MDR-TB patients are on increased risk of responding late to the treatments than the non-diabetic MDR-TB patients.