Diabetic nephropathy affects approximately one third of diabetic patients and is the leading cause of end-stage renal disease. Identification of genetic susceptibility factors contributing to the development of diabetic nephropathy could facilitate prediction, development of improved treatments, and prevention of this devastating complication of diabetes. Although investigations to identify the causal genetic variants associated with diabetic nephropathy have been inconclusive, new approaches, including whole genome association scanning, offer hope for the future.