This paper introduces a new decision tree algorithm Diabetes Prediction Algorithm (DPA), for the early prediction of diabetes based on the datasets. The datasets are collected by using Internet of Things (IOT) Diabetes Sensors, comprises of 15000 records, out of which 11250 records are used for training purpose and 3750 are used for testing purpose. The proposed algorithm DPA yielded an accuracy of 90.02 %, specificity of 92.60 %, and precision of 89.17% and error rate of 9.98%. further, the proposed algorithm is compared with existing approaches. Currently there are numerous algorithms available which are not complete accurate and DPA helps. © BEIESP.