Objective: Previous studies have shown that chronic kidney disease (CKD) is associated with accelerated loss of skeletal muscle in patients on dialysis. However, the relationships of sarcopenia with albuminuria and early stage CKD in patients with type 2 diabetes have not been examined. Methods: We analyzed diabetic subgroup data from 409 patients with type 2 diabetes from the Korean Sarcopenic Obesity Study (KSOS). Sarcopenia was defined as a skeletal muscle mass index (SMI) [SMI (%) = total skeletal muscle mass (kg) / weight (kg) x 100] less than 2 SDs below the sex-specific mean for a younger reference group. The estimated glomerular filtration rates (eGFRs) and urinary albumin-to-creatinine ratios (ACRs) were used to assess renal function and albuminuria. Results: The prevalence of sarcopenia was significantly increased in the albuminuria group compared with the normo-albuminuria group (26.7% vs. 12.6%, P = 0.001), as well as in CKD 3 group compared with the CKD 1-2 group (46.7% vs. 15.1%, P = 0.005). After adjusting for age, SMI was negatively correlated with urinary ACR and positively correlated with AST, ALT, total cholesterol, HDL cholesterol, and LDL cholesterol levels. Multiple logistic regression analysis revealed that the odds ratio for albuminuria association was 3.02 (95% Cl 1.37-6.67) in the lowest tertile of SMI compared with the highest tertile after adjusting for various confounding factors. Conclusion: Sarcopenia is more prevalent in individuals with albuminuria than in those without albuminuria. Furthermore, increased albuminuria is independently associated with low muscle mass in patients with type 2 diabetes.