Objectives: Chronic kidney disease (CKD) and nonalcoholic fatty liver disease (NAFLD) are significant risk factors for cardiovascular disease (CVD) and mortality. This study investigated the combined effects of CKD and NAFLD on the risk of CVD, including myocardial infarction (MI), stroke, and death, in patients with type 2 diabetes. Methods: Data were obtained from the Korean National Health Insurance Service. Patients with diabetes who participated in health screenings from 2009 to 2011 were included in the study. CKD was defined as an estimated glomerular filtration rate less than 60 mL/min/1.73 m². The fatty liver index (FLI) was used as a surrogate marker for NAFLD. Subjects were divided into four groups according to the presence/absence of CKD and NAFLD. Results: The prevalence of CKD and NAFLD was 10.1% and 26.0%, respectively. During a mean follow-up of 6.9 years, 40,863 incident MI, 58,427 strokes, and 116,977 deaths were reported in 1,607,232 patients with type 2 diabetes. After adjusting for conventional risk factors, patients with CKD and NAFLD showed the highest risk of MI and stroke [hazard ratio (HR) = 1.49; 95% confidence interval (CI): 1.42–1.57 and stroke, HR = 1.48; 95% CI: 1.41–1.54, respectively] compared with those without either CKD or NAFLD. Both overall and cardiovascular mortality were highest in the NAFLD/CKD group compared with the other groups (HR = 2.00; 95% CI: 1.94–2.06, and HR = 2.20; 95% CI: 2.07–2.35, respectively). Advanced liver fibrosis was significantly associated with an increased risk of CVD in patients with NAFLD. Proteinuria was significantly associated with incident CVD events in patients with CKD. Conclusions: The combination of CVD and NAFLD was associated with an increased risk of CVD and mortality in patients with type 2 diabetes. Close monitoring and appropriate management of CVD and NAFLD may be warranted to prevent CVD in these patients.