Type 2 diabetes mellitus (T2DM) and obstructive sleep apnea (OSA) are both common major public health concerns. Epidemiological and clinical evidence postulates that OSA may be a causal factor in the pathogenesis of T2DM. This review examines recent empirical developments in theory, research, and practice regarding T2DM and OSA. We first examined the data from 10 studies that covered 281 patients with T2DM who used continuous positive airway pressure therapy, followed by research that describes how hypoxia/reoxygenation in OSA may be key triggers that initiate or contribute to the status of insulin resistance and inflammation. We then propose mechanisms that may relate diabetes with OSA. The issues that should be addressed in the future are outlined. We suggest that intervention with continuous positive airway pressure may improve diabetic symptoms and should be encouraged for patients with diabetes.