Diabetic kidney disease is a important health problem worldwide, and is a major cause of morbidity and mortality in individuals with type 2 diabetes. In recent years, the role of microalbuminuria as a preceding marker of nephropathy progression has been challenged, suggesting the need of novel sensitive renal biomarkers for early risk stratification. Adipocyte fatty acid binding protein is an adipokine with its circulating levels highly associated with cardio-metabolic diseases. In addition to its function as a lipid chaperone mediating intracellular fatty acid trafficking, adipocyte fatty acid binding protein also modulates inflammatory responses due to its high expression in macrophages. Over the past decade, the role of inflammation in diabetic kidney disease has been increasingly recognized. In this talk, the role of adipocyte fatty acid binding protein in diabetic kidney disease will be presented, and its potential to be employed as a useful candidate marker of diabetic kidney disease will also be discussed.