The study titled "Quantifying the Impact of Diabetic Peripheral Sensory Dysfunction on Neural Mobility, Gait Speed, and Balance Performance" aims to explore how sensory impairments associated with Type 2 Diabetes Mellitus (T2DM) affect physical performance and neural function. Diabetes mellitus is known to cause long-term complications, particularly affecting the nervous system, resulting in peripheral diabetic neuropathy (PDN) in 30–50% of patients. These complications manifest as sensory and motor dysfunctions such as reduced tactile discrimination, altered proprioception, muscle weakness, and impaired gait and balance. The study employs a cross-sectional design with 62 participants diagnosed with T2DM for more than two years but without clinically diagnosed DPN. Participants will undergo a series of assessments including two-point discrimination using an aesthesiometer, Semmes Weinstein monofilament testing for foot sensitivity, a 10-meter walk test for gait speed, neural mobility tests focusing on the tibial and sural nerves, and the Balance Error Scoring System (BESS) for balance evaluation. These measures will help establish correlations between sensory loss and functional impairments in mobility and balance. The study’s significance lies in identifying early sensory deficits that could potentially lead to falls and decreased quality of life, even before full-blown DPN manifests. A detailed review of literature supports the hypothesis that sensory dysfunction due to diabetes impacts gait and balance and that neural mobilization techniques may enhance nerve function and overall mobility. Statistical analysis using Pearson’s correlation will determine the strength of relationships between sensory impairment and the measured physical performance outcomes. This research could provide a basis for preventive and rehabilitative strategies in diabetic individuals, emphasizing early detection and targeted physiotherapy interventions to maintain functional independence and reduce fall risk. Ethical clearance, informed consent, and non-invasive procedures ensure the study’s scientific and ethical integrity. By linking peripheral sensory dysfunction with neural dynamics and movement outcomes, this research hopes to contribute meaningfully to the management of diabetic complications.