Purpose <p>Type 2 diabetes(T2D) patients are at the greatest risk of developing kidney disease. The triglyceride glucose index (TyG index) is considered a simple marker of insulin resistance. Its role in the progression of diabetes kidney disease (DKD) in T2D is unclear. We wanted to see if the TyG index could accurately predict the beginning of DKD. The study aimed to investigate the association of the TyG index with DKD progression in T2D.</p> Methods <p>428 T2D patients with and without DKD were included. DKD progression was defined according to the Kidney Disease Improving Global Outcomes (KDIGO) criteria. Patient demographic data were divided into quartiles according to the TyG index. Multiple regression was used to analyze the association between the TyG Index and metabolic indicators.</p> Results <p>The results showed that 257 participants (60.0%) developed DKD. Subjects in the DKD group had a significantly higher TyG index than those without the DKD group (9.9 ± 0.7 vs. 9.4 ± 0.6, <i>P</i> &lt; 0.001). The DKD group had longer disease duration, higher age, systolic blood pressure, glycated haemoglobin, triglycerides, total cholesterol, urea, uric acid, creatinine, LDH, albumin creatinine ratio, TyG index (<i>P</i> &lt; 0.05 for each), and lower eGFR. An increased TyG index was shown to be an independent risk factor for DKD.</p> Conclusion <p>The TyG Index is a potential indicator for DKD in T2D individuals. This finding supports the clinical utility of the TyG index in assessing renal function deterioration in individuals with DKD.</p>