Background: Development of target organ damage like chronic kidney disease and coronary artery disease in diabetes is more common and more rapid.Identifying sub clinical target organ damage in prediabetic phase is essential to prevent complications. Objective: Prediabetes is an elevation in serum fasting glucose level of:100 to 125 mg/dL (5.6 mM to 6.9 mM) and Glycated hemoglobin between 5.7 and 6.4 percent . The purpose of this case __ampersandsignndash; control study was to corelate microalbuminuria to Prediabetes. Method: This study was done at the Department of Medicine and Department of Biochemistry, DR. PSIMS __ampersandsignamp; RF foundation Chinaoutpally, A.P.India between July 2011 to Dec 2012. 500 patients (250 cases, 250 controls) above 18 years of age were included in the study. The microalbuminuric reference range was 30 __ampersandsignndash; 300mg/day. Results: Microalbuminuria levels were found to be significantly higher in Prediabetes patients and in males when compared to female patients. Conclusions: Prediabetes patients with high mean microalbuminuria and high mean CRP levels with significant elevated lipid levels had developed significant complications.