To examine the relationships between health literacy, well-being and general health among adults with type 2 diabetes (T2DM) in Australia, overall and separately for those reporting culturally and linguistically diverse (CALD) backgrounds. Data were analyzed from 1962 adults with T2DM (aged 59 ± 9 years; 51% men) from the Diabetes MILES-1 survey. Participants completed the Health Literacy Management Scale (HeLMS), Personal Well-being Index (PWI) and EuroQOL Group Visual Analogue Scale (EQ-VAS) for general health status. Multiple linear regression examined associations between HeLMS Domains and outcomes (PWI; EQ-VAS) overall, and separately for CALD participants (13.7%; overseas-born in a primarily non-English-speaking country and/or primary non-English language). Approximately >70% of participants (regardless of CALD background) reported high health literacy across all HeLMS Domains (HeLMS score >4). Greater health literacy was associated with greater well-being and health status. 'Attitudes toward health' (Domain 1; PWI: β = 6.9, 95% CI (4.6-9.3); EQ-VAS: β = 9.0, (6.7-11.3)) and 'socioeconomic considerations' (Domain 4; β = 8.0, 95% CI (5.8, 10.3); β = 5.5, 95% CI (3.3-7.7)) were associated with both well-being and health status. 'Social support' (Domain 3; β = 4.3 95% CI (1.9-6.7)) and 'being proactive' (Domain 7; β = 4.6 95% CI (2.2, 7.0)) were associated with well-being only. Among participants from CALD backgrounds, Domain 1 was consistently associated with subjective well-being and general health. Findings suggest the importance of domain-specific health literacy in protecting well-being and general health among adults with T2DM, including those from CALD backgrounds. Longitudinal studies are needed to understand these inter-relationships and to inform the development of appropriate interventions.