The prevalence of diabetes is increasing and has already reached pandemic proportions. Diabetes is a well-known risk factor for chronic kidney disease. Diabetic kidney disease (DKD) occurs in up to 40% of people with type 1 or 2 diabetes and is nowadays the leading cause of end-stage renal disease (ESRD). Among several factors involved in the development and progression of DKD are also inflammation and oxidative stress. Unfortunately, there is a paucity of sensitive and specific biomarkers for the early prediction of patients who will develop DKD or will progress to ESRD. This review summarizes the evidence regarding the prognostic value and benefits of targeting markers of inflammation (pro-inflammatory cytokines, tumour necrosis factor-α (TNF-α) and TNF-α receptors, adhesion molecules, chemokines) and markers of oxidative stress. Some of these biomarkers are promising, but further studies are needed before they can be used in clinical practice.