Background: Type 2 Diabetes Mellitus (T2DM) is a global health concern associated with various complications, including peripheral neuropathy. While the prevalence of T2DM continues to rise, particularly in urban areas, there is limited comprehensive research on the prevalence and associated factors of peripheral neuropathy in urban communities. Methods: A cross-sectional study was conducted in a representative urban community to assess the prevalence of peripheral neuropathy among individuals with T2DM. Clinical evaluations, neuropathy assessments, dietary surveys, socioeconomic data collection, and healthcare access inquiries were performed on 500 adult participants. Data were analyzed using descriptive statistics, logistic regression, and prevalence calculations. Results: The study revealed a substantial prevalence of peripheral neuropathy in the urban population, with rates of 38.5% according to the Michigan Neuropathy Screening Instrument (MNSI) and 42.0% based on the Neuropathy Symptom Score (NSS). Participants with neuropathy exhibited poorer glycemic control, higher blood pressure, and higher BMI. Lower education and income levels were associated with neuropathy. Additionally, individuals with neuropathy had slightly reduced access to healthcare services. Conclusion: Peripheral neuropathy is a common complication among T2DM patients in urban communities. Early screening, intervention, and management of glycemic control and blood pressure are essential. Addressing socioeconomic disparities and improving healthcare access and patient education can help reduce the burden of neuropathic complications in urban populations.