N-Acetyl-beta-D-glucosaminidase (NAG) activity has been measured in the serum and urine of diabetics. Results have shown significantly higher levels of serum NAG in newly diagnosed diabetics (945 +/- 372 units/ml) compared to non-diabetic controll (668 +/- 225, p less than 0.005) and the levels were reduced by treatment (778 +/- 218, p less than 0.05). Changes occurred in the same direction when urinary NAG was measured falling from a mean of 572 +/- 298 units/mg urinary creatinine, on diagnosis to 291 +/- 176 after treatment (p less than 0.005), as compared with 177 +/- 86 in non-diabetic controls. Established insulin-treated diabetics had a urinary NAG activity of 461 +/- 440 and a serum NAG activity of 790 +/- 245. No correlation was found between urine NAG activity and urine glucose (r = 0.315), or serum NAG and serum glucose (r = 0.273). An assessment of this enzyme is made in relation to early microangiopathy.