Peripheral Diabetic Neuropathy (PDN) is the major complication of diabetes, and sensory-motor impairments can compromise balance, increasing the risk of falls and consequently can lead to functional disability. Thus, this study aims to evaluate the sensory and motor aspects of balance in individuals with type 2 diabetes mellitus with and without PDN. This is a cross-sectional study which analyzed balance in 51 individuals, divided into three groups: G1 – individuals with Peripheral Diabetic Neuropathy; G2 - individuals with diabetics and without PDN; and G3 – individuals without Diabetes Mellitus. As for the instruments used to evaluate balance, specific tests based on model system approach were applied: MiniBESTest and the modified Clinical Test of Sensory Integration of Balance (mCTSIB). It was observed that individuals in G1 showed balance impairment in mCTSIB and MiniBESTest compared to G2 and G3. In individuals with diabetics without PDN (G2) there was a reduction in tandem position time on the unstable surface and worse anticipatory postural adjustments (APA) and reactive postural response (RPR) compared to individuals without diabetes (G3). PDN showed impairments in both static and dynamic balance, with alterations in sensory orientation, decreased anticipatory and reactive postural response. However, individuals with diabetes and without PDN also present worsening response in tandem position time on the unstable surface, APA and RPR tasks.