The study aimed at assessing the utilization of psychosocial care in the management of type 2 diabetes in Nsambya Hospital. The objectives of the study were: 1) to determine the extent to which screening for psychological distress is utilized in the management of type 2 diabetes among patients in Nsambya Hospital; 2) to establish the extent to which social support is provided in the management of type 2 diabetes among patients in Nsambya Hospital; 3) to determine the extent to which promotion of self-esteem is provided in the management of type 2 diabetes among patients in Nsambya Hospital. In terms of the methodology, the study was cross sectional in nature using both quantitative and qualitative approaches of data collection. Out of 180 participants, 123 were sampled as the study respondents with 4 key informant interviews. The results of the study concluded that there was a very low screening level of psychological distress among patients with type 2 diabetes. Whereas patients had various forms of social support, peer support groups were lacking. And lastly there was a gap in the promotion of self-esteem among the type 2 diabetes patients. Basing on the outcomes of the study, the conclusion is that screening for psychological distress is not a priority in the management of type 2 diabetes, peer support groups are inexistent in the course of care and that the promotion of self-esteem in patients is still lacking. Therefore, from these findings the recommendations include inclusion of psychological screening in the care of patients with type 2 diabetes, provision of peer support groups for patients and scaling up self-esteem provision through empowerment programs.