Context Blood oxygen saturation (SpO(2)) is lower in type 1 diabetes (T1D) compared with nondiabetic controls. Hypoxia (low tissue oxygenation) is thought to be a risk factor for progression of diabetic complications, but it is unknown whether hypoxemia (low SpO(2)) is associated with diabetic complications. Objective To test if hypoxemia is associated with presence of diabetic complications in T1D. Design, Setting, and Methods Cross-sectional study in persons with T1D divided by a previously suggested threshold in low (<96%) and high (>= 96%) SpO(2), measured in the supine position with pulse oximetry. Complications included albuminuria (2 of 3 consecutive measurements >= 30 mg/g), any diabetic retinopathy, neuropathy, and history of cardiovascular disease (CVD). Odds ratios were adjusted for age, diabetes duration, sex, smoking, physical activity, body mass index, systolic blood pressure, and blood hemoglobin. Results We included 659 persons, 23 (3.5%) with low and 636 (96.5%) with high SpO(2). In total, 151 (23%) had albuminuria, 233 (36%) had retinopathy, 231 (35%) had neuropathy, and 72 (11%) had CVD. The adjusted odds ratio (95% CI, P value) for low vs high SpO(2) was 3.4 (1.3-8.7, P = 0.01) for albuminuria, 2.8 (1.0-7.5, P = 0.04) for retinopathy, 5.8 (1.8-18.6, P < 0.01) for neuropathy, and nonsignificant for CVD (0.6 [0.2-2.4, P = 0.51]). Conclusions SpO(2) below 96% was associated with increased presence of albuminuria, retinopathy, and neuropathy in T1D, but not with CVD. Whether hypoxemia could be a target of intervention to prevent progression in microvascular disease in type 1 diabetes should be investigated.