This study examined the association between sex hormone-binding globulin (SHBG) levels and risk of type 2 diabetes in women and men. The study found that individuals with the highest SHBG quartile had a 10-fold lower risk of developing type 2 diabetes compared to those in the lowest quartule. Genetic variants of SHBG that were associated with higher SHBG levels also reduced risk of type 2 diabetes. Both observational analyses and Mendelian randomization analyses confirmed the strong relationship between plasma SHBG levels and lower risk of type 2 diabetes, independent of other risk factors. The results suggest SHBG levels may help predict risk of type 2 diabetes beyond traditional risk factors.