Background: Diabetes knowledge in patients with diabetes is a key factor to improve their quality of life and limit diabetic complications. Aim & Objectives: This study aimed to assess the level of diabetes knowledge and associated factors among diabetes patients of Central Nepal. Methods: A total of 132 patients with history of diabetes for more than three months were enrolled from the outpatient department of National Ayurveda Research and Training Center (NARTC) during the period from June 2014 to August 2014. A cross-sectional design was used to assess patients’ level of knowledge and associated factors via interview-administered 24-item Diabetes Knowledge Questionnaire (DKQ). Results: The participants mean age ± SD was 52.3 ± 11.19 years. Among the study participants 66.7% were male, 48.5% belonged to indigenous caste and 96.0% were married. In regards to education level, 30.3% of the participants had higher secondary or above education and 21.2% were illiterate. About one-fourth of the participants were housewife, 15.2% government employee and 12.1% were farmer. Participants with history of diabetes for 1-5 years were 48.5%, for more than 5 years were 30.3% and for less than 1 year were 21.2%. Among the diabetic patients, 51.5% reported to have family history of diabetes. The mean ± SD DKQ score of the respondents was 11.0 ± 3.32. Most commonly missed questions included role of diabetes in blood circulation, diabetic diet, signs of hypoglycaemia, hyperglycaemia, and importance of insulin in diabetes. A significant relationship existed between DKQ score and age, marital status, level of education, occupation, and patients with family history of diabetes. Conclusion: Diabetes knowledge in diabetes patients was poor and associated with age, marital status, education level, occupation, and patients with family history of diabetes.