Background: Diabetic retinopathy (DR) is one of the common microvascular complications of diabetes and it is the most common cause of preventable blindness in developing countries. In diabetic patients other than hyperglycemia, dyslipidemia is an important, but often overlooked factor in the development of DR. Objectives: To investigate the association of dyslipidemia with development of diabetic retinopathic complications. Material and Methods: This hospital based cross sectional study included 150 diabetic patients who visited tertiary health care center in Gujarat. Demographic, clinical details were obtained; participants were evaluated for HbAlc, lipid profile and status of diabetic retinopathy. Multiple logistic regression analysis was used to analyze statistical correlation between dyslipidemia and diabetic retinopathy. Results: In diabetic retinopathy patients derangement of lipid levels in form of low levels of HDL C<40mg/dl was present in 46.66% patients followed by serum triglycerides>160mg/dl was present in 43.33% patients. 33% patients was found with raised LDL>130mg/dl. Diabetic retinopathy was found to have significant correlation with duration of disease, fasting blood sugar and low levels of HDL. Conclusion: Low levels of HDL along with fasting blood sugar level and duration of disease in type II diabetes are significantly associated with severity and progression of diabetic retinopathy. This could explain the failure of intensive glycemic control in reducing retinopathic complications observed in some studies. Hence, appropriate preventive and treatment strategies should be considered timely.