INTRODUCTION: A generic medicine contains the same active substance(s) as the reference medicine, and it is used at the same dose(s) to treat the same disease(s) as the reference medicine. However, the name of the medicine, its appearance (such as colour or shape) and its packaging can be different from those of the reference medicine’. However, all agree on the general requirements that the product is off-patent, contains an active ingredient in a previously approved medicine, is shown to be bioequivalent to that previously approved medicine, and has the same dosage form, route of administration and treatment characteristics. MATERIALS AND METHODS: A prospective observational study was carried out over a period of six months in General Medicine Department Of Muthoot Healthcare, Pvt. Ltd, Kozhencherry. The type 2 diabetic patients who were on oral hypoglycemic were enrolled in the study. The knowledge of the patients was assessed by using a set of questionnaire. For this study 398 subjects were enrolled based on the inclusion and exclusion criteria. RESULTS: Out of 398 subjects, 292 subjects (74.4%) have not heard about generic medicines and the perception of patients regarding generic medicines were poor.