During the last two decades, type 2 diabetes mellitus increasingly has been seen in children. Although still not as common as type 1 diabetes among children, it has become the leading form of diabetes among adolescents of certain ethnicities. It is imperative that primary care providers recognize the risk factors, perform appropriate screening tests, and initiate therapy for children who have type 2 diabetes or prediabetes. This article discusses the epidemiology and pathogenesis of the disease, complications, and treatments, and includes a concise, easy-to-follow algorithm to assist providers in diagnosing and treating young patients.