Obesity, Metabolic syndrome and dyslipidaemia are gaining prevalence as noncommunicable causes of health hazards like CVD, IHD. National surveys under the leadership of ICMR were in progress to detect causes of high fat content in the body and means to detect the same early are underway. We made an attempt to know the importance of body fat percentage in Type 2 Diabetes Mellitus as marker of dyslipidaemia. : To study relationship of BMI, body fat percent (BFP) and lipid profile in type 2 Diabetes Mellitus.: 35 Type2DM (normotensive) subjects in the age group of 30-55yrs in both sexes and 35 age & sex matched healthy controls were selected for the study after obtaining informed consent. Anthropometric data was recorded. Their fasting venous blood samples were analysed for sugar & Lipid profile ERBA Chem 5 semiautoanalyser. BMI and BFP were calculated.: BFP was well above normal levels in both cases and controls (38.03±12.13 &44.9±7.66 respectively) for the age group of 30-55yrs normal limits being 19,3% -26.3% according to Jackson & Pollard. The mean BMI of cases was 33.22±8.59 compared to 37.07±4.1 of controls, indicating both groups were class II obese individuals. BMI & BFP showed statistically significant correlation between cases and controls by Student’s ‘t’ test (p <0.009 & <0.003 respectively) and also within the groups (P <0.00001) by way of ANOVA. Analysis was done to detect gender difference. In males and females there was strongly positive correlation of BMI as detected by Pearson’s Correlation coefficient (r = 0.914 & 0.976). TC, TG & HDL showed weak positive correlation with BMI & BFP in diabetic subjects, whereas LDL correlated negatively with BMI & BFP.: We could not conclude superiority of BFP over BMI in assessing dyslipidaemia. Nevertheless, the study can be done using other methods of evaluation of BFP in T2DM like ultrasound, computerised tomography.