Aims  To determine whether carotid‐radial pulse wave velocity (crPWV), a simple non‐invasive measurement of muscular artery structure and function, is increased in offspring of patients with Type 2 diabetes compared with well‐matched controls with no family history of diabetes. Serum levels of intercellular adhesion molecule‐1 (sICAM‐1) were also examined. Methods  Offspring (n = 19, M = 8) were recruited via contact with patients attending clinics. Controls (n = 19, M = 8) were recruited by advertisement. crPWV was measured using COMPLIOR. Blood pressure and heart rate were determined and fasting blood taken for measurement of metabolic and endothelial parameters. Results  Offspring and controls were well matched mean (sd) for age 33.1 (9.6) vs. 32.8 (9.5) years, body mass index 24.8 (4.9) vs. 24.3 (3.4) kg/m2, waist circumference 78.3 (2.3) vs. 76.3 (2.5) cm, and systolic blood pressure 120 (9.3) vs. 119 (14.2) mmHg. crPWV was 10% higher in the offspring 9.94 (1.3) m/s compared with controls 9.01 (1.2) m/s, P = 0.02 despite similar pulse pressure 52 (10.5) vs. 53.5 (9.3) mmHg and resting heart rate 71 (8.7) vs. 69 (14.0) beats/min. They also showed a trend toward higher sICAM‐1 217 (55) vs. 188 (40) ng/ml, P = 0.07 concentrations which were also strongly correlated to crPWV in offspring (r = 0.63, P = 0.004). Conclusions  Vascular dysfunction in the form of increased muscular artery stiffness is present from an early stage in subjects at higher risk of developing diabetes. This may be secondary to impaired activation of endothelial signalling pathways in the context of inherited insulin resistance.