Aims: This study was performed to assess the prevalence of dry eye syndrome and diabetic retinopathy (DR) in type 2 diabetic patients and their contributing factors. Materials and Methods: 90 type 2 diabetic patients referred to the Department of Ophthalmology Veer Chandra Singh Garhwali Government Institute of Medical Science and Research, Srinagar, Pauri Garhwal, Uttarakhand, between December 2022 and February 2023 were consecutively selected. All patients were asked about other diseases and drugs. Dry eye syndrome was assessed with TBUT tests and Schirmer. Indirect and direct ophthalmoscopy were done for all the cases. Diabetic Retinopathy was graded according to early Treatment Diabetic Retinopathy (ETDRS) criteria. Results: Of 90 subjects, 48 patients (54.88%) suffer from dry eye syndrome. Although dry eye syndrome was more common in older and female patients, this association was not significant. But there was significantly association between dry eye syndrome and duration of diabetes. Diabetic Retinopathy was found in 64 patients (71.11%) of which 15 (16.67%) patients had mild NPDR, 13 (14.44%) had moderate & 7(7.88%) had severe NPDR. PDR was seen in 29(32.22%) patients. Conclusions: In this study the prevalence of dry eye syndrome was 54.88%. Diabetes and dry eyes appear to have a common association. Further studies need to be undertaken to establish an etiologic relationship. However, examination for dry eye should be an integral part of the assessment of diabetic eye disease.