Fibrotic changes and hyperplasia of the capsule causes contractures and limited joint range of motion is categorized as Adhesive Capsulitis of Shoulder. It is estimated that two to five percent of the general population have a tendency to adhesive capsulitis. The study aims to assess the Capsular stretching and Activity Oriented Exercise Approach in the management of Type-2 Diabetic Adhesive Capsulitis. Capsular Stretching group composed of female 23 subjects treated with Spencer technique with conventional therapy, Activity Oriented Exercise Approach group composed of 23 female subjects treated with capsular stretching along with conventional therapy. Using KINOVEA software flexion, abduction, external and internal rotation movement range were measured. Data were analysed at 8 weeks after the treatment. On analysis, the post-test values of SPADI score and KINOVEA measurements were improved in both Capsular stretching group and Activity Oriented Exercise Approach group. But the Activity Oriented Exercise Approach group (p-value less than 0.0001) showed better improvements in comparing the values. The study concluded that both groups had shown effectiveness but the Activity Oriented Exercise Approach was more effective when compared with Capsular stretching by using KINOVEA measurements.