Ghrelin, a peptide hormone is responsible for change in energy homeostasis affected by food intake and growth hormone (GH) secretion. Moreover, it also modulates glucose metabolism. Studies have suggested that levels of ghrelin fluctuates in different physiological conditions like obesity and diabetes mellitus. Objective: The objective of the study was to compare the ghrelin levels in these three groups and to investigate whether there is any association of ghrelin with type 2 diabetes and obesity. Study Design: A comparative cross-sectional study. Place and Duration: This study was conducted at Services hospital, Lahore for the duration of one year from October, 2018 to September, 2019. Material and Method: A total number of 90 subjects were enrolled in the study after considering inclusion and exclusion criteria, among them 30 subjects were suffering from Type2DM, 30 were obese with BMI >30 and 30 were normal without Type2DM and Obesity. A comprehensive questionnaire was used to collect the data from 90 volunteers. Body height, weight, waist and hip circumference were measured according to procedure described by WHO and BMI was calculated. Glucose and ghrelin levels were measured by using Ghrelin measurement kits. Results: All parameters of study of obese subjects were higher as compared to diabetic and control subjects. Blood glucose levels of diabetics were towards the higher side as compared with obese and control subjects. Fasting serum ghrelin was significantly lower in type 2 diabetic and obese as compared to control subjects [34.63±6.86 (diabetic), 46.97± 12.04 (obese), 171.56±28.0 (control)] P < 0.005. There was a negative correlation of serum ghrelin levels with fasting glucose (r = - 0.40, p = 0.024*). This study demonstrated that hyperglycemia may result in suppression of ghrelin levels in type 2 diabetic and obese subjects Conclusion: The present study was in the favor that there is an inverse relationship between fasting glucose and Ghrelin level. The study also demonstrated that hyperglycemia due to disturbance in glucose metabolism may result in suppression of ghrelin level in T2DM and Obesity. Key words: ghrelin, Type2DM, obesity, BMI