Objectives: The prime objective of the study was to determine the prevalence of Diabetic Retinopathy in recently diagnosed type 2 diabetic patients with duration up to one year. Study Design: Single center, descriptive, observational study. Setting: Department of Medicine, Khyber Teaching Hospital, Peshawar. Period: August, 2017 to March, 2018. Material and Methods: A total of 196 patients who were either newly diagnosed or diagnosed within last 12 months were included in the study. Patients with type 1 diabetes or diagnosed later than 12 months were excluded from the study. Patients with retinopathy due to some other cause were also excluded from the study. Both out door patients and admitted patients were included in the study. After detailed history, proper fundoscopic examination of both eyes was performed and findings were recorded on preformed proforma. Results: A total of 196 patients were enrolled in the study. One hundred and ten were male and 86 were female in a ratio of 1.3:1 respectively. Age distribution amongst study population ranged between 30-60 years. Mean age of the population was 49.18 ± 7.62 SD years with median age 48 years and mode age 45 years. Out of 196 patients, 32 (16.3%) patients had diabetic retinopathy on proper fundoscopic examination. Conclusion: Diabetic retinopathy is a well known microvascular complication of diabetes mellitus and any one with this complication must be referred to specialist ophthalmologist for further necessary investigation and management to prevent further complications.