Aim- To study the prevalence of dry eye disease(DED) and its association with diabetic retinopathy (DR), diabetic neuropathy (DN) and other metabolic parameters in patients with type 2 diabetes mellitus. Materials and methods- Dry eye disease was assessed in 102 patients with type 2 diabetes mellitus using OSDI (Ocular Surface Disease Index) score, tear break up time(TBUT) test and Schirmer’s test. All the subjects underwent indirect ophthalmoscopy, DN screening was done based on Revised NDS score, DR was graded according to Early Treatment Diabetic Retinopathy (ETDRS) criteria. The relation of DED with status of diabetic retinopathy, peripheral neuropathy, dyslipidemia, metabolic control and duration of disease was also assessed. Results- The prevalence of dry eye disease was 37.2%.We observed a significant associationof dry eye disease with diabetic retinopathy (p=0.017) and diabetic neuropathy(p=0.019). Conclusion- As the prevalence of DED among diabetics is high and diabetic retinopathy and neuropathy are often found to be associated with DED, therefore, along with screening for DR and DN, assessment of dry eyes should be routinely included in patients with diabetes in ophthalmology clinics.