Background and Objective <p>The present study aims to systematically review the literature regarding the effect of exercise on physical and physiological functions in obese diabetics.</p> Methods <p>A literature search was conducted in PubMed, ERIC and PEDro databases. Keywords used for the search were: “Obese diabetic”, “Obese diabetic AND exercise”. Quality assessment was done by PEDRO. Outcome measure included Glycaemic control (Hba1c, glucose and insulin level), insulin resistance, anthropometric measure, body composition, lipid profile, inflammatory markers and aerobic capacity. Intervention includes exercise training.</p> Results <p>Out of 987 articles, total of nine articles were included in this study. The average Pedro score of the nine selected studies was found to be 6.4. Eight out of nine studies showed that both aerobic and resistance training led to improvements in glycaemic control. Resistance training showed greater benefits for body composition and muscular strength in three out of the nine studies. Three out of the nine studies showed reductions in inflammatory markers were reported following aerobic exercise interventions. Improvements in aerobic capacity were observed in studies incorporating aerobic or combined training protocols in three out of the nine studies.</p> Conclusion <p>Exercise has beneficial effect on physical and physiological functions such as glycemic control, insulin sensitivity, anthropometric measures, body composition, lipid profile, inflammatory markers and aerobic capacity in obese diabetics.</p> Registration <p>Considering the guidelines for Preferred Reporting Items for Systemic Reviews and Meta-Analyses (PRISMA), we carried out this systemic review and meta- analysis. Our PROSPERO registration number is CRD420261296203.</p>