About 10% to 15% of in-hospital urinary tract infections (UTIs) are due to Candida species, and the prevalence is still increasing. A cross-sectional study was conducted to determine fungal causative agents of UTI in asymptomatic and symptomatic diabetic patients and associated risk factors.Between May and June 2010, a total of 422 diabetic patients with asymptomatic UTI (n = 387) and symptomatic UTI (n = 35) were investigated for UTI at Gondar University Hospital. Clean-catch midstream urine specimens were collected from each participant. Fungal urine culture and identification were done using standard microbiologic procedure.The age range of the participants was 20 to 84 years (mean, 42.3 years). Significant candiduria was detected in 7.5% and 17.1% of asymptomatic and symptomatic diabetic patients, respectively. The overall prevalence of significant candiduria in both groups was 8.3%. Candida species were isolated in 38 urine samples. Of these, 84.2% were from the asymptomatic diabetic patients and the remaining 15.8% were from the symptomatic patients. The most common species were C albicans (42.0%), C glabrata (34.2%), and C tropicalis (15.8%). Significant candiduria was strongly associated with being female.The presence of candiduria in diabetic patients should not be neglected. Although C albicans is the organism most often associated with serious fungal infection, other Candida species are also isolated as clinically important opportunistic pathogens in type 2 diabetic patients.