Diabetes is a chronic and slowly progressive disease that is presently reaching epidemic proportions in several parts of the world. Multiple aspects including genetic and lifestyle changes have been identified as the key factors leading to the development of type 1 and type 2 diabetes. Although molecular mechanisms underlying the pathogenesis of diabetes remain unclear, recent discoveries in understanding post-transcriptional gene regulation by microRNAs (miRNAs) has opened a new area of research. MicroRNAs have been implicated as new players in pathogenesis as well as complications of diabetes. MiRNAs have been shown to be necessary not only during embryonic development of insulin-producing cells, transcription of (pro-)insulin gene and insulin secretion, but also in development of insulin resistance and diabetes. The present review summarizes the findings related to understanding the role of miRNAs in endocrine pancreas development, pancreas regeneration, islet function and diabetes.