Aim: To assess the clinical profile and association of various risk factors with severity of diabetic retinopathy (DR) in patients with type 2 diabetes mellitus (DM). Materials and Methods: A prospective observational study included 56 patients (112 eyes) of type 2 DM with DR. All cases underwent ophthalmic examination and severity of diabetic retinopathy was graded according to the modified ETDRS classification. Risk factors like age, gender, duration of DM, hypertension, HbA1C levels, haemoglobin level and serum lipid profile were studied for any association with severity of DR. Data were analyzed using standard statistical technique and a probability value ('p' value) of < 0.05 was considered as statistically significant. Results:The mean age of study group was 52.90±10.60 years. M: F ratio was 2.3:1. 17.86% were in Non -PDR, 28.60% in PDR and 53.60% were in advanced diabetic retinopathy. Severity of diabetic retinopathy was significantly associated with more duration of DM, high HbA1c level, Hypertension, anemia, dyslipidemia, positive family history of DM and low socioeconomic status. Conclusion:Controlling modifiable risk factors like hypertension, dyslipidemia, high HbA1c level and anaemia are helpful in preventing the development and reducing the severity of diabetic retinopathy.