Background: Dyslipidemia is one of the major modifiable risk factors for cardiovascular diseases (CVD) in a type-2 diabetic (T2DM) patient. Dyslipidemia in T2DM patients is attributed due to increased free fatty acid flux secondary to insulin resistance. Despite its high prevalence and related complication of dyslipidemia in T2DM patients, there is a paucity of data on the prevalence of dyslipidemia in T2DM patients in Ethiopia. Objective: To determine the prevalence of dyslipidemia and its associated risk factors among T2DM patients at Jimma medical center (JUMC) Jimma, Ethiopia. Methods and Materials: An institution-based-cross-sectional study was conducted from June 1 to August 4, 2019. A convenience sampling technique was used to recruit 248 T2DM patients in the study. Data on socio-demographic characteristics, behavioral, and clinical factors were collected using a structured questionnaire through face to face interviews. Five milliliters of the fasting venous blood sample was collected for serum glucose and lipid profile analysis. Blood pressure, weight, and height were measured. Data were analyzed by SPSS version 21. Bivariate and multivariate logistic regression analyses were performed and p-value <0.05 was considered as statistically significant. Results: The overall prevalence of dyslipidemia among study participants was 68.1%. Isolated lipid profile abnormality of hypertriglyceridemia was found in 48%, hypercholesterolemia in 13.7%, high level of low-density lipoprotein (LDL-C) in 28.6%, and low level of high-density lipoprotein (HDL-C) in 50.8% study participants. Being in an age group ≥30 years, physical inactivity, being obese, hypertension, and high blood glucose value were significantly associated factors with dyslipidemia. Conclusion: High prevalence of dyslipidemia was found among T2DM in the study area. The findings of this study should be taken into account to conduct appropriate intervention measures on the identified risk factor, and implement routine screening, treatments, and prevention of dyslipidemia.