Objective: It is well known that diabetic kidney disease is a risk factor for cardiovascular diseases (CVD) in patients with type 2 diabetes mellitus (T2DM). In this study, the effects of urine albumin excretion rate (AER) and estimated glomerular filtration rate (eGFR) on CVD outcomes were analyzed in a population of T2DM. Methods: The study was carried out using recorded information of a cohort study. A total of 1,914 patients with T2DM with no prevalent CVD were enrolled in an 8 years prospective study and received multifactorial intervention. The risk of CVD outcomes was assessed according to chronic kidney disease staging, which was categorized using AER (mg/d) and eGFR (mL/min/1.73 m(2)). The effects of AER and eGFR on risk of CVD onset were also analyzed. Results: During the follow-up period (median 6.8 years), 71 CVD events occurred. At baseline, those with AER >= 300 mg/d and coexisting eGFR 60-89 mL/min/ 1.73 m(2) or <60 mL/min/1.73 m(2) showed increased risk for CVD outcomes when compared with "no chronic kidney disease" (AER <30 mg/d and eGFR >= 90 mL/min/1.73 m(2)). The increased CVD risk was observed in patients who progressed to AER >= 30 mg/d during the follow-up period, whereas patients who progressed to eGFR <90 mL/min/1.73 m(2) alone showed no increased CVD risk. During the follow-up period, after multifactorial intervention, 8.7% patients with microalbuminuria and 1.8% patients with overt nephropathy reversed to nonnoalbuminuria or microalbuminuria. Conclusion: AER is a more sensitive predictor than eGFR for CVD outcomes in T2DM patients. Overt nephropathy can be reversed after multifactorial intervention.