Aims The relationship of albuminuria with hand grip strength in patients with type 2 diabetes was still uncertain. We carried out a cross-sectional study to examine the association between serum hand grip strength and albumin to creatinine ratio (ACR) among Chinese patients with Type 2 Diabetes in a community-based study. Methods A total of 427 Chinese type 2 diabetic patients were recruited from five clinical centers from March to May in 2019. Anthropometry indicators, hand grip strength, biochemical parameters and indices of glucose metabolism were measured. ACR was categorized as normo- (ACR<30 mg/g) and albuminuria (ACR≥30 mg/g). Both anthropometry and biochemical measurements were compared between these two groups categorized by ACR levels. Binary logistic regression analyses were carried out to evaluate the association of albuminuria and other clinical or biochemical variables. The correlation between hand grip strength and log(ACR) was examined by Pearson’s correlation analyses. P values<0.05 were considered statistically significant for all analyses. Results Age, HbA1c, FPG, TG, Scr and SBP were all higher in correlation with higher levels of ACR, while hand grip strength was the reverse. Binary logistic regression analyses showed that high hand grip strength was an independent protective factor of the presence of albuminuria. Conclusions High hand grip strength might have a protective role in the progression of type 2 diabetic nephropathy.