The negative ways in which diabetes affects the brain, and the role of neural insulin and glucose is an interesting research topic as research has shown a correlation between neurodegenerative diseases and diabetes. This thesis focuses on how polyunsaturated fatty acids (PUFAs) induce neuroprotective effects in a Palmitic Acid (PA) model of Diabetes Mellitus Type 2, commonly known as Type 2 Diabetes. Palmitic acid was administered to SHSY-5Y cells with the intention of modelling type 2 diabetes by means of insulin impairment, and an autoimmune response. The role of fatty acids was explored by administering 3 concentrations of docosahexaenoic acid (DHA), eicosapentaenoic acid (EPA), or alpha-lipoic acid (ALA) either before or after a dose of PA which was administered at different concentrations. Additionally, pharmacological inhibitors of DHA signalling pathways were utilised to characterise the potential DHA signalling pathways involved in the DHA-mediated neuroprotection. The results showed that DHA (but not EPA or ALA) was able to both prevent, and reverse damage caused by a palmitic acid model of neurodegeneration. Additionally, antagonists of the DHA pathway successfully prevented damage caused by palmitic acid, providing a greater insight into the DHA pathway.