Diabetes distress (DD) is a significant psychosocial factor that undermines effective self-management and glycemic control in individuals with Type 2 diabetes. This study evaluated the impact of a structured behavioural health intervention using the Diabetes Self-Management Education (DSME) toolkit and the Diabetes Distress Scale (DDS-17) in a primary care setting. Eleven patients with poorly controlled diabetes (A1c ≥ 8%) were enrolled, and four completed a seven-week telephonic DSME program. Pre-intervention and post-intervention DDS-17 scores were compared to assess changes in distress levels. Results showed a clinically meaningful reduction in diabetes distress, with participant scores shifting from high or moderate levels to moderate or low levels. Item-level analysis highlighted significant improvements in emotional burden and perceived overwhelm. Although initial interest was high, attrition underscored the challenges of sustained engagement in traditional care formats. These findings reinforce the efficacy of behavioural education and emotional screening in diabetes care and offer a blueprint for future digital transformation. Crucially, the intervention’s structured format and measurable psychological benefits show how this kind of program could be turned into an AI-powered system paving the way for scalable, intelligent platforms that deliver personalized behavioural health support to diverse, at-risk populations, and helps patients stay engaged in managing their health globally. This study emphasizes the importance of integrating emotional health support into chronic disease care and offers practical insights for future digital and policy-driven diabetes management strategies.