The devastating impact of type 2 diabetes mellitus (DM) on vascular, renal, retinal, and peripheral nerve functions has been well documented. However, there is also evidence that older adults with this disease exhibit impairments in the planning, coordinating, sequencing, and monitoring of cognitive operations, collectively known as executive function. Although poorly understood, disturbances in executive function, particularly within the dimension of time sharing, may contribute to the gait abnormalities and increased risk for falls, functional impairments, and disabilities associated with type 2 DM. However, the relationships between executive function and functional abilities remain poorly understood in this population. Current neuropsychological research regarding the concept of executive function is presented here as a framework upon which to examine the integrity of this critical cognitive entity in adults with type 2 DM. The pathophysiological mechanisms thought to underlie diabetes-related executive dysfunction are explored, and the possible contributions of executive deficits to impairments in gait and function observed in older people with type 2 DM are summarized. Finally, a brief discussion of dual-task assessment and intervention strategies that may facilitate the care and rehabilitation of the growing population of patients with type 2 DM is provided.