We propose and create an incentive based recommendation algorithm aimed at improving the lifestyle of diabetic patients. This algorithm is integrated into a real world mobile application to provide personalized health recommendations. Initially, users enter data such as step count, calorie intake, gender, age, weight, height and blood glucose levels. When the data is preprocessed, the app identifies the personalized health and glucose management goals. The recommendation engine suggests exercise routines and dietary adjustments based on these goals. As users achieve their goals and follow these recommendations, they receive incentives, encouraging adherence and promoting positive health outcomes. Furthermore, the mobile application allows users to monitor their progress through descriptive analytics, which displays their daily activities and health metrics in graphical form. To evaluate the proposed methodology, the study was conducted with 10 participants, with type 2 diabetes for three weeks. The participants were recruited through advertisements and health expert references. The application was installed on the patient phone to use it for three weeks. The expert was also a part of this study by monitoring the patient health record. To assess the algorithm performance, we computed efficiency and proficiency. As a result, the algorithm showed proficiency and efficiency scores of 90% and 92%, respectively. Similarly, we computed user experience with application in terms of attractiveness, hedonic and pragmatic quality, involving 35 people in the study. As a result, it indicated an overall positive user response. The findings show a clear positive correlation between exercise and rewards, with noticeable improvements observed in user outcomes after exercise.