Diabetes mellitus (DM) is a global health challenge with increasing prevalence. Camel milk (CM) and its derivatives have emerged as promising candidates for managing DM due to their unique composition and bioactive components, such as insulin-like proteins, lactoferrin, immunoglobulins, and oligosaccharides. These components exhibit hypoglycemic and anti-inflammatory properties, improving glycemic control, insulin sensitivity, and lipid profiles in individuals with DM. CM products, including fermented yogurt and powder formulations, have also shown beneficial effects on glucose metabolism and insulin regulation. The therapeutic effects of CM on DM are mediated through enhanced pancreatic β-cell function, modulation of insulin signaling pathways, and reduction of oxidative stress. Despite its potential, camel milk therapy in diabetes management faces several limitations. These include a lack of standardization in composition, limited clinical evidence, unclear mechanisms of action, and uncertainty regarding the optimal dose and duration of use. Comprehensive and robust clinical studies are essential to fully validate the therapeutic potential of camel milk and its derivatives. Previous reviews focus on using raw CM, with limited to no study on transformed camel milk products, such as fermented products, powder, and whey protein powders, which also possess anti-diabetic properties. This review discusses the effects of whole CM and its products, which form an effective, more practical, and easier to access than raw camel milk, and the mechanisms underlying the therapeutic potential of CM and its products in combating DM.