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Background and Objectives: Type 2 diabetes, which is highly prevalent in older Mexican Americans, may influence cognitive functioning. We examined the association of diabetes with decline in global cognitive function and memory function over a 2-year period.Methods: Study subjects were derived from an existing cohort of Latinos aged 60 and over in the SALSA project (n = 1,789). Statistical analysis was conducted using logistic regression and a generalized estimating equation (GEE).Results: Logistic regression analysis indicated that baseline diabetes was a significant predictor of major cognitive impairment in Modified Mini Mental State Exam (3MSE) (OR = 1.68, 95% CI = 1.21, 2.34) and word-list test (OR = 1.31, 95% CI = 0.99, 1.75). GEE analysis showed that there was no significant difference between diabetic and nondiabetic subjects in change of cognitive scores over 2 years (3MSE, mean = −0.58, 95% CI = −1.48, 0.32; word-list test, mean = −0.10, 95% CI = −0.32, 0.11).Conclusions: More diabetic complications were associated with major cognitive decline among diabetic subjects. Research on long-term impact of treatment for type 2 diabetes is warranted. [Copyright &y& Elsevier]