Diabetes mellitus is in alarming rise from 40 million to 70 million people by 2025 in India. Drug Utilization studies help to identify the treatment of adherence problems and improve proper drug usage. The present work was undertaken to evaluate the drug utilization pattern of anti-diabetic drugs in DM patients. A prospective observational study was carried out at rural areas nearby to Islampur for a period of 3 months. 90 patients were screened having DM and a structured questionnaire was used to collect data and analysis done. The prevalence was about 6.6% Type I DM and 93.33% of them about 50% patients were in above 50 years of age. Totally 76.66% of patients were on monotherapy and Metformin (Glycomate) was commonly prescribed. In combination therapy, Glibenclamide and Metformin (35.86%) were mostly. Type II DM was treated effectively with both Insulin and Oral hypoglycemic drugs. The average cost of Therapy during the Study was found to be Rs. 100-300/month in 70% of population under study. In the study carried out most of the prescriptions were rational, but further improvement is needed. The choice of drug should be based economic status, associated conditions. Rational prescribing should focus on dose and duration as well as interaction with other medications