The article presents current directions in research on neurocognitive correlates of type 1 diabetes in children. Review. Research findings concerning cognitive functioning in children with diabetes are presented, including impairments of memory, attention, executive functions, and behavioral control. Moreover, risk factors for such impairments of children’ functioning are outlined, such as hypo-, hyperglycemia and early onset of illness. Conclusions. Better understanding of neurophysiologic mechanisms underlying cognitive dysfunctions, of their impact on diabetic children’ daily functioning and on attaining optimal illness control seems to be of major clinical importance.