Objectives: This study was performed to identify factors related to perceived health status among patients with type 2 diabetes. Methods: This is cross-sectional observational study. Respondents were 106 visitors in an outpatient diabetes clinic of a university hospital. Self-report questionnaire which included general information inquiry, diabetes-related, sociopsychological factors, functional health literacy and perceived health status was used for this study. The data was analyzed by using descriptive statistics, independent simple t-test, one-way ANOVA, and hierarchical multiple linear regression. All analysis were conducted using SAS 9.3. Results: Among the respondents, 43.4% engaged in poorly perceived health status. After adjusting for control variables, functional health literacy is significantly related to perceived health status(β=0.095, p=0.016). Conclusion: Independent of diabetes-related, sociopsychological factors, higher functional health literacy is associated with better perceived health status of patients with type 2 diabetes. In order to improve perceived health status in the type 2 diabetes patients, it is necessary to develop strategy to enhance the functional health literacy.