<p>Type 2 diabetes mellitus (T2DM) is a growing public health concern in Brazil, especially in underserved regions where social and geographic barriers may affect disease management and quality of life. Functional capacity and health-related quality of life (HRQoL) are critical dimensions often overlooked in primary care approaches. To assess the functional capacity and HRQoL of individuals with T2DM receiving care in primary health units in Tocantinópolis, Northern Brazil, and to explore associations with sociodemographic and clinical variables. This is a cross-sectional, descriptive, and analytical study involving 99 adults diagnosed with T2DM. Functional capacity was assessed through validated protocols measuring upper and lower limb muscle strength, hamstring flexibility, mobility and cardiorrespiratry fitness. Physical activity was analyzed using the International Physical Activity Questionnaire (IPAQ) and HRQoL was assessed through Diabetes Quality of Life (DQOL). Sociodemographic and clinical data were also collected. Statistical analysis included descriptive statistics and linear regression models. Most participants were women (71%), with a mean age of 58.7 years. The physical and psychological domains of DQOL presented the lowest scores, while the social domain had the highest. Functional capacity was low for most participants. There were significant associations between low physical activity levels and poorer HRQoL scores in the physical and psychological domains. Individuals with T2DM in this sample presented reduced functional capacity and compromised HRQoL, particularly in domains related to physical and psychological well-being. These findings highlight the urgent need for integrated health strategies in primary care that address physical activity and emotional support for people living with diabetes in remote and low-resource settings.</p>