Background: The outbreak of COVID-19, a highly contagious disease, necessitated widespread lockdowns, leading to reduced physical activity (PA), heightened stress, increased sedentary behavior, and disruptions in glycemic control. Remarkably, type 2 diabetes mellitus (T2DM) is a primary comorbidity associated with COVID-19. This study aims to evaluate the impact of an 8-week-structured home-based rehabilitation program on cardiorespiratory fitness levels in individuals with T2DM who have recovered from COVID-19. Materials and methods: This prospective, randomized, open-label parallel trial took place in the cardiovascular and respiratory physiotherapy outpatient department (OPD) of a tertiary care hospital, spanning from April 2021 to December 2022. The study comprised 16 participants, segregated into two groups: the intervention group and the control group. Eligible participants were individuals with post-COVID-19 T2DM who had experienced a mild illness, satisfactory recovery, and had tested negative. The intervention group underwent warm-up, aerobic exercises, strength training, and cool-down sessions for 3–5 days a week over an 8-week period, totaling 150 minutes per week. Patient assessments were conducted using the blood glucose level, 6-minute walk test (6MWT). Results: While both groups demonstrated enhancements in blood glucose levels, these improvements did not reach statistical significance (p = 0.22). However, the intervention group demonstrated a more significant improvement in walking distance (p = 0.0013) by the 8th week. Notably, within-group comparisons were statistically significant (p = 0.0016) for both parameters at various timeframes, except for the 6MWT in the intervention group at baseline vs the 4th week (p = 0.2). Conclusion: This study demonstrates the effectiveness of a home-based rehabilitation program in improving cardiorespiratory fitness levels among post-COVID-19 T2DM patients.