Kerala, the socially and demographically most advanced state of India, is the diabetic hub of south Asia. This study explores the prevalence of diabetics in Kerala by socioeconomic, regional, and demographic characteristics, and examines diabetes-free life expectancy for both males and females in the state. In Kerala, a health survey was conducted in 2004 comprising 3320 households. This survey consists of 17,071 individuals in all age group. This is the latest survey in the state which gives detailed socioeconomic and regional characteristics of diabetes population. Sullivan Method (Life Table Technique) was used to compute diabetes-free life expectancy. The diabetes prevalence increases with age. In Urban areas, prevalence rate is roughly twice as compared to that in the rural areas. Compared to midland, and highland regions, the prevalence rates are relatively high in lowland and coastal regions. The widowed persons have higher rate of diabetics prevalence. Diabetes-free life expectancy of males and females are 67.8 and 74.1 years, respectively. Statistically significant differences exist between males and females in diabetes-free life expectancy in all ages except 85 years and over. Males and females on average 3.6 years and 4.3 years, respectively live with diabetes in their life time. Kerala needs stringent health intervention programs to reduce the prevalence of diabetes by taking into account of socioeconomic, demographic, and regional correlates of diabetes and healthy life expectancy. Higher prevalence of diabetes among better educated and rich people shows that the solutions for the problem exceed the limits of poverty and lack of knowledge in the health.