It is becoming increasingly clear that epidemic of type 2 diabetes sweeping the globe is associated with decreasing levels of activity and an increasing prevalence of obesity. Thus, the importance of promoting exercises as a vital component of the prevention as well as management of Diabetes Mellitus must be viewed as a high priority. And, since the time exercises have been advocated for the people with diabetes, there is an ongoing debate upon the benefits to risk ratio, safety and type of exercises to be used in such patients. So far no single research article has answered all these questions and thus this literature review has been conducted. This literature review collaborates and analyses few high quality research studies and provides information regarding benefits, safety concerns and general guideline regarding exercise prescription for diabetic patients.