Background: Type 2 Diabetes mellitus is associated with significant morbidity and mortality. Aberrant serum triglyceride, LDL, HDL cholesterol levels may increase the risk for cardiovascular disease and stroke in these patients. Aim: Present study was aimed at finding correlation between the severity of diabetes mellitus represented by glycemic parameters and serum lipid profile i.e., serum triglyceride, total cholesterol, LDL, HDL and VLDL cholesterol. Materials and Methods: The study included randomly selected 100 newly diagnosed adult T2DM patients (age 52.14 ± 14.5 years) and 100 healthy individuals (age 51.12 ± 17.7 years) as cases and controls respectively. History taking and general examination of participants was done, followed by collection blood samples in clot activator and EDTA vacutainer tubes as required for fasting and postprandial blood glucose, lipid profile and HbA1c. Two tail independent t-test was done to compare the variables between cases and controls, considering P value <0.05 as statistically significant. Results: FBG, PPBG and HbA1c were found to be significantly higher in cases as compared to controls. Serum triglyceride, total cholesterol, LDL- C, VLDL- C were found to be significantly elevated, while HDL- C was found to be significantly decreased among the cases as compared to controls. Serum triglyceride and VLDL-C showed a significant positive correlation with HbA1c. Conclusion: Type 2 diabetes mellitus is associated with dyslipidemia which is positively correlated glycemic status. Thus, proper glycemic control and early detection and management of dyslipidemia may play a significant role in preventing cardiovascular morbidity and mortality in T2DM patients.