Diabetes mellitus is a common disorder associated with systemic inflammation and oxidative stress affecting various organ systems leading to microvascular (retinopathy, nephropathy and neuropathy) and macrovascular (myocardial infarction, stroke, peripheral vascular disease) complications. Although the impact of diabetes on lung functions has been previously reported, especially in asthma and COPD, the lung has not been described as a common target organ in diabetes and this has important medical, social and financial consequences in our already overburdened healthcare system. The underlying mechanism and pathophysiology of such an association have rarely been described in the literature. This review aims to discuss the effects of diabetes on lungs, probable mechanisms by which hyperglycemia may affect lung functions and mechanisms by which respiratory diseases can lead to onset, or worsening of pre-existing hyperglycemia with inherited challenges in the management.