BACKGROUND:  The problem of dyslipidemia is high in patients with diabetes mellitus. There is ample  evidence that abnormalities in lipid metabolism are important risk factors for increased incidence of diabetes associated complications. The most important risk indicators for these complications are lipid profile abnormalities. Therefore, the aim of this study was to assess the correlation between serum lipid profile with anthropometric and clinical variables among type 2 diabetes mellitus patients. METHODS: A comparative cross sectional study was conducted at University of Gondar Hospital from February to April in 2015. A total of 296 participants (148 case and 148 healthy controls) were selected using systematic random sampling technique. Socio- demographic characteristics and clinical data were collected using pretested structured questionnaire incorporating the WHO Stepwise approach. Fasting venous blood sample was collected for blood sugar; lipid profile investigations and the blood levels were determined by Bio Systems A25 Chemistry Analyzer (Costa Brava, Spain). Independent sample t-test and Man Whitney U test were used to compare means. P-value < 0.05 was considered statistically significant. RESULTS: Overall, T2DM patients had significantly higher total cholesterol ([205.4±50.9vs184.9±44.1]mg/dl), low density lipoprotein ([113.1±43.2vs100.1±36.4] mg/dl) and triacylglycerol ([189.22± 100.9 vs 115.13±59.2] mg/dl), and significant decline of high density lipoprotein cholesterol ([56.5±20.4vs62.1±13] mg/dl) as compared to healthy controls, respectively. Triacylglycerolemia was significantly associated with the risk of cardiovascular disease (AOR: 1.015; 95%CI: 1.010-1.021). Evident correlation was observed between anthropometric and clinical variables with lipid profile. CONCLUSIONS: Higher serum levels of fasting blood sugar, total cholesterol, low density lipoprotein cholesterol, and triacylglycerol and lower levels of high density lipoprotein cholesterol are found in type 2 diabetes mellitus patients. Thus, DM patients are more prone to dyslipidemia which is an  important risk factor for atherosclerosis and coronary heart disease. KEYWORDS: Type 2 diabetes mellitus, lipid profile, Ethiopia