Diabetic neuropathy (DN) is one of the most prevalent and severe complications of diabetes mellitus, affecting millions of people worldwide. It encompasses a range of conditions involving damage to peripheral nerves, leading to symptoms such as pain, numbness, and impaired motor function, particularly in the extremities. This article provides an in-depth review of the latest trends in the understanding, diagnosis, and treatment of diabetic neuropathy. It discusses the role of novel biomarkers, advanced imaging techniques, and cutting-edge therapies such as gene therapy and regenerative medicine. Furthermore, it evaluates emerging pharmacological and non-pharmacological interventions aimed at improving patient outcomes and reducing disease burden.