Obstructive sleep apnea (OSA) is an increasingly prevalent sleep disorder with estimated prevalence of moderate to severe sleep apnea ranging between 6-13% in the adult population. Nocturnal intermittent hypoxia has been associated with an increased risk of developing type 2 diabetes and insulin resistance (IR). The existing indices of hypoxia, used in polysomnography (PSG), cannot express accurately the influence of the mild desaturations precisely during sleep. In the present study, 73 subjects without other comorbidities were examined by PSG. Hypoxia parameters were analyzed, in the intervals with low values of SpO₂ signal. The thresholds were set at 94% and 92% and the average value (M) of the SpO₂ signal, in areas below thresholds, were calculated. The desaturations were analyzed together with their duration within the recording in terms of SpO₂ signal parameters. Blood samples were taken for biochemical analysis. A total of 50 subjects were diagnosed with OSAS with mean AHI of 56.11±27.70/h and 23 subjects had no sleep apnea with mean AHI of 3.47±0.6/h. The amount of desaturations was significantly correlated with insulin levels (r=0.301, p=0.034) and the percentage of desaturation events (Dev) that were longer than 6 points (2 sec) (r=0.301, p=0.034). In addition, mean duration of desaturations was significantly correlated with IR as expressed by HOMA index (r=0.289, p=0.047), as well as with total duration of desaturation of SpO₂ (r=0.322, p =0.025) and percentage of Dev that were long than 6 points (2 sec) (r=0.292, p=0.044). A strong correlation was also revealed between total duration of desaturations and fasting glucose (r=0.887, p=0.000). Results suggest that hypoxia parameters derived from SpO₂ signal analysis, are strongly correlated with IR and fasting glucose levels, implying a role of hypoxia in the pathogenesis of diabetes.