Introduction Sleeve gastrectomy with loop bipartition is a new operation based on the modification of Santoro’s operation by making sleeve gastrectomy followed by side-to-side gastro-ileal anastomosis. The aim of this study is to compare this novel operation with sleeve gastrectomy only as a therapeutic method for obese patient with diabetes type II. Patients and methods The trial was designed as a prospective randomized comparative study. The trial protocol was approved by the institutional ethics committee. A total of 51 patients between 18 and 60 years, with a BMI between 40 and 60 kg/m2 and indication for bariatric surgery according to the national institutes of health criteria were randomized to receive either laparoscopic sleeve gastrectomy with loop bipartition (LSGB) (n=26) or laparoscopic sleeve gastrectomy (LSG) (n=25). The primary and secondary end points were assessed before surgery and afterward at discharge and at the time points 3, 6, and 12 months postoperatively. Result Both operations are effective in the treatment of obesity with a significant difference in operative time and blood loss. There was no significant difference between both groups regarding early and late complications. LSGB is more effective than LSG in the decrease of BMI, waist circumference, weight loss, lipids levels, blood glucose, and glycated hemoglobin than LSG group after 1 year of surgery. Conclusion LSGB is an effective easy procedure to treat morbidly obese patients with type II diabetes. This operation showed many advantages with little complications.