Pregnancy causes insulin resistance which can lead to gestational or overt diabetes. High blood sugar levels in the mother cross the placenta and stimulate the fetus's pancreas, potentially causing macrosomia and other issues. Diabetes is diagnosed through glucose tolerance tests. It increases risks like fetal abnormalities, death, and complications for both mother and baby. Management depends on the type of diabetes but generally involves diet, exercise, blood sugar monitoring and possibly insulin to control levels, followed by delivery at term if possible.