Sleep disorders are increasingly recognized as both a consequence and a contributor to the pathophysiology of Type 2 Diabetes Mellitus (T2DM). This review explores the bidirectional relationship between T2DM and common sleep disorders, such as Obstructive Sleep Apnea (OSA), insomnia, restless leg syndrome (RLS), and circadian rhythm disturbances. Sleep disruption affects glycemic control, insulin sensitivity, and overall metabolic health. Conversely, the chronic hyperglycemia and associated complications in T2DM exacerbate sleep problems. Understanding this interplay is crucial for improving clinical outcomes. The article highlights recent findings, discusses mechanisms, and proposes integrative approaches to managing sleep disorders in T2DM patients.