Background: Diabetic neuropathy is the most common long-term complications of diabetes, frequently presenting as painful diabetic peripheral neuropathy (PDPN), which can significantly impair patients’ quality of life. This study set to estimate prevalence of PNPD and health-related quality of life (HRQoL) in the setting of primary health care in Saudi Arabia. Method: This study was conducted in primary health care centers affiliated with the National Guard Health Affairs in Western Saudi Arabia. Arabic version of the Douleur Neuropathique 4 (DN4) questionnaire was administered on diabetic patients to screen for neuropathic pain and short form (SF12) questionnaire to assess Health Related Quality of Life (HRQoL). Results: The study screened (n = 349) type 2 diabetic patients. Prevalence of PDPN was 33.2%. PDRN was more likely to affect females (Adjusted odds ratio “AOR” = 1.96, p = 0.024), and those living with diabetes for over 15 years (AOR = 2.26, p = 0.039), and those on insulin treatment (AOR: 2.33, p=0.010) alone, or in combination (AOR= 1.78, p=0.034). Both physical and mental components of quality of life scores were significantly higher in diabetic patients without PDPN compared to those with it; 49.57±9.31 versus 40.77±8.14 for physical component QOL and 51.72±9.36 versus 44.35±8.12 for mental component QOL, p<0.001. Discussion and Conclusion: Painful peripheral neuropathy is relatively common among type 2 diabetic patients in Western Saudi Arabia and impacts both physical and mental components of the quality of life of affected patients.