Aim: The aim of this study to evaluate the correlation of duration of diabetes mellitus, microalbuminuria, hyperlipidemia with severity if diabetic retinopathy. Methods: The prospective cross-sectional study which was carried in the Department of Ophthalmology, Madhubani Medical College and Hospital, Madhubani, Bihar, India for 1 year. Total 220 patients were included in this study. For the study, type II DM is defined as a fasting plasma glucose of more than or equal to 126 mg/dl or 2-hour post glucose load plasma glucose of more than or equal to 200 mg/dl or a random plasma glucose of more than or equal to 200 mg/dl in the presence of symptoms of hyperglycemia. All the biochemical assessments were done using an Auto analyzer. Results: A total of 220 subjects of either gender were included in our study, out of which 125 (56.82%) were females and rest were males 95; 43.18%). On ophthalmologic examination we found that only 112 out of 220 diabetics suffered from diabetic retinopathy and the rest 108(49.09%) did not show any signs of diabetic changes in the fundus. Out of 112 patients in the retinopathic group, 57 (25.91%) of them suffered from very mild to moderate NPDR, 32 (14.55%) patients showed signs of severe to very severe NPDR and only 23 (10.45%) had proliferative diabetic retinopathy. statistically significant association was found between the severity of retinopathy and duration of diabetes (p < 0.001). Majority of patients (85%) of Grade 0 microalbuminuria (< 2.5 mg/mmol) had no Retinopathy. A statistically significant association between microalbuminuria grade and severity of retinopathy was observed (p < 0.001). Out Of 220 patients of diabetes, total cholesterol was found to be desirable (< 200 mg/dl) in only 70 (31.82%) patients. Out of these 70 patients with desirable cholesterol majority (60%) had no retinopathy (Group I), 21.43% had very mild to moderate retinopathy (Group IIA), 12.86% had severe to very severe retinopathy (Group IIB) and 5.71% had proliferative diabetic retinopathy (Group IC). Conclusion: Duration of diabetes and microalbuminuria has been found to be the independent risk factors for diabetic retinopathy, but serum cholesterol levels did not show an independent role in our study.