The current study aimed to determine bone formation markers ( osteocalcin and bone alkaline phosphatase) as biomarkers for diagnosis the patients with diabetic neuropathy (DN) and to find the relationship between these markers and dyslipidemia in Iraqi patients with diabetic neuropathy, and if these patients are more prone to the risk of atherosclerosis disease.Subjects & Methods: in this study, blood were obtained from 25 healthy individuals as a control group (G1), 25 diabetic patients with dyslipidemia as a group (G2), and 25 diabetic patients without dyslipidemia as a group (G3). Age range (45-65) years for all subjects.Patients were attended in the National Diabetes Center / AL-Mustansiriya University/Baghdad. Serum was frozen until used for the analysis of fasting blood glucose ( FBG), osteocalcin (Ocn) , bone alkaline phosphatase (BALP), triglyceride (TG), cholesterol (Ch), high density lipoprotein-cholesterol (HDL-ch), low density lipoprotein-cholesterol (LDL-ch) , and very low density lipoprotein-cholesterol (VLDL-ch). Glycated haemoglobin (HbA1C) is determined in all blood.Results: the results showed a highly significant increase in FBG,HbA1C, Ocn and BALP in G2 and G3 when compare with G1, and a significant difference in lipids levels between two patients groups and control. There is a significant negative correlation between serum Ocn and BALP. Serum Ocn and ALP level concentrations were independently and highly positively correlated with TG,VLDL-ch, and AIP ratio. Conclusions: Ocn and BALP were further increased in DN with complications and poor glycemic control. The AIP ratio was highly significant increased in DN patients with and without dyslipidemia comparing with control ,therefore, these patients are more prone to the risk of atherosclerosis disease.