Aim: To analyze drug utilization pattern in the treatment of patients suffering from Diabetes Mellitus. Materials and Methods: This prospective study was carried out in the Department of Pharmacology at Anugrah Narayan Magadh Medical College and Hospital, Gaya, Bihar from March 2019 to August 2019. Total 110 patients with diabetes were analysed for their prescription pattern and the data was recorded on a case record form (CRF). Data for drug utilization as per the core prescribing indicators of WHO for drug utilization studies and data for evaluating drug consumption was calculated in terms of defined daily dose (DDD). Result: Drug utilization pattern of diabetic patients showed an average of 6 drugs per prescription out of which on an average 2.20 drugs were for diabetes. The average daily prescribed dose of anti-diabetics was under the defined daily dose (DDD) range prescribed by WHO which is indicative of a rational drug prescription pattern. Among the antidiabetic drugs prescribed, metformin 500mg was the most commonly prescribed drug in monotherapy while in combination therapy glimepiride 2mg + metformin 500mg was most commonly prescribed. Conclusion: Our study revealed that drug prescription in diabetic patients is quite rational in terms of prescribed dose and number of drugs being prescribed for each patient.