Background: Early identification of prognostic factors and close monitoring of the biomarkers is used to monitor the occurrence or progression of diabetic retinopathy. Therefore, this study aimed to assess change in fasting blood sugar level, time to diabetic retinopathy and its predictors among type 2 diabetes patients in Ethiopia.Methods: Institution based retrospective follow-up study was conducted at University of Gondar Comprehensive Specialized Hospital. Linear mixed effect model and cox proportional hazard models were fitted separately and later the two models were fitted jointly using R software. Variables with p-value <0.05 were considered as significant predictors in the adjusted analysis.Result: The incidence rate of diabetic retinopathy was 2 per 100-person year of observation with median follow up time of 90.8 months (IQR: 63.4). The current value and rate of change in fasting blood sugar level were significant predictors of time to diabetic retinopathy (AHR=1.35;95% CI: 1.12-1.63) and (AHR=1.70; 95%CI:1.21-2.39) respectively. Hypertension (AHR=2.49; 95%CI: 1.32-4.66), taking >1 antidiabetic oral agent (AHR=4.90; 95%CI: 1.07-20.0) and more than 10 years duration (AHR=0.17, 95% CI: 0.06-0.46) were predictors of time to diabetic retinopathy.Conclusion: This study revealed that medication, duration, weight, current age, and time have significant association with the progression change of fasting blood sugar. On the other hand, hypertension, medication and duration were significant predictors of time to diabetic retinopathy. The current value of fasting blood sugar and rate of fasting blood sugar change were significantly associated with time to diabetic retinopathy.