The chronic metabolic disorder known as diabetes mellitus is frequently accompanied by a number of complications, one of which is diabetic neuropathy, which has a significant impact on the quality of life those who suffer from the condition. Existing diabetes treatment methods have a number of drawbacks, including suboptimal control of blood glucose levels and unfavorable side effects. The potential of synthetic peptides as novel therapeutic agents for the management of diabetes and the alleviation of neuropathy is investigated in this review as well. The potential of synthetic peptides as insulin mimetics and sensitizers has been demonstrated. These peptides are designed to interact with insulin signaling pathways and are intended to enhance glucose uptake. As a result of their neuroprotective effects, it is possible that they could reduce inflammation, encourage nerve regeneration, and alleviate the pain that is associated with neuropathy. It is essential for the therapeutic efficacy of these peptides that they have a structural design that is optimized, with a particular emphasis on the amino acid composition, stability, and bioavailability. Recent preclinical studies and clinical trials that are still ongoing provide interesting and useful information regarding their efficacy and safety. The possibility that synthetic peptides have the ability to transform diabetes care and improve patient outcomes by highlighting the multifaceted role that synthetic peptides play in the regulation of metabolism and the relief of neuropathy. When it comes to clinical practice, additional research is necessary in order to fully realize the benefits of synthetic peptide therapies.