Background: In patients with type 2 diabetes mellitus (T2DM), failure to control of blood glucose with lifestyle modifications and oral hypoglycemic agents (OHA) leads to insulin therapy. Objectives: We aimed to 1) find out the prevalence of psychological insulin resistance among patients with T2DM and 2) explore the factors affecting and reasons behind their attitude towards insulin use. Patients and methods: In a cross sectional study, 1703 Libyan patients with T2DM on oral hypoglycemic agents (OHA) were studied. They were recruited from outpatient clinics of two hospitals and 5 primary health care centers in Tripoli, Libya over a period of six months. They were asked to complete a self-administered questionnaire. Results: From the total number of 1703 participants, 1611 (94.6%) reported unwillingness to accept insulin therapy should it be prescribed to them. Hesitant patients reported more concerns about possible side effects that may develop from errors in insulin dose than acceptors (73.1% vs 46.7% respectively). 25.6% of the reluctant patients perceived that insulin may cause blindness. Concerns about painful injection of insulin and occurrence of hypoglycemia were expressed by 48.4% and 66.2% of the unwilling group respectively. Conclusion: Psychological insulin resistance is a common obstacle to initiation of insulin therapy in Libyan patients with T2DM. There is an urgent need for enhanced patient education to change the attitude of the patients towards insulin therapy.