Distal sensory polyneuropathy is a common and unpleasant complication of diabetes mellitus. It is the main initiating factor for foot ulceration. The increasing prevalence of diabetes has important associated health implications, both in terms of morbidity and mortality, and results in the consumption of scarce medical resources. Identification of somatic neuropathy in clinical practice is therefore important for targeted educational and other interventions. In this article, we describe methods for detecting somatic neuropathy in clinical practice and highlight those tests that are proven to be predictors of foot ulceration. The approach for detecting and characterizing somatic neuropathy for clinical trials, however, differs significantly. These methods must ideally have high levels of reproducibility, sensitivity, and specificity. Currently, several neurophysiologic tests are employed in clinical trials in order to accurately characterize diabetic neuropathy. The recent introduction of the computer-assisted programs for the measurement of sensory modalities for clinical trials has been a major advance. Due to their invasive nature and associated morbidity, nerve biopsy studies are no longer used in clinical trials. Recently, using magnetic resonance imaging (MRI), significant spinal cord atrophy has been demonstrated in established neuropathy. If this observation proves to be an early feature, then a relatively rapid, noninvasive MRI technique may be used in the future to characterize diabetic neuropathy.