Background: Diabetic retinopathy is a complication of type 2 diabetes resulting from long-term accumulated damage to retinal blood vessels. It is one of the leading causes of preventable blindness in adults with type 2 diabetes. The purpose of this study was to assess the prevalence of diabetic retinopathy and associated factors among type 2 diabetes patients visiting Tikur Anbessa Hospital in Addis Ababa, Ethiopia. Methods: A cross-sectional study was conducted from March to April 2018. Data was collected using semi-structured questionnaire and direct eye examination with Topcon Retinal Camera. Data was analyzed using SPSS for Windows version 22. Logistic regression models were used to identify predictors of diabetic retinopathy. Statistical significance was determined using odds ratio with 95% confidence interval. Result: A total of 191 type 2 diabetes patients, mean age of 57 ± 10.1 years, participated in this study. From this, 98 (51.3%) had diabetic retinopathy. Multiple logistic regression model revealed that male were about 11 times (AOR=11.248, 95%CI=1.816, 69.689) more likely to have diabetic retinopathy. Participants who visited diabetes clinic every month were about 37 times (AOR=0.027, 95%CI=0.003, 0.0253), those with HbA1c ≤ 7% were 10 times (AOR=0.099, 95%CI=0.020, 0.485), and those without comorbid hypertension were 31.3 times (AOR=0.032, 95%CI=0.006, 0.167) less likely to have diabetic retinopathy. There was a 1.13 times increase in prevalence of diabetic retinopathy for a 1 year increase in the type 2 diabetes duration (AOR=1.126, 95%CI=1.022, 1.242). Conclusion: Our study showed the prevalence of diabetic retinopathy was 51.3%. Male sex, clinic visits every 6 months, longer duration of diabetes, HbA1c>7%, and comorbid hypertension were independently associated with diabetic retinopathy. Timely screening for diabetic retinopathy and continuous diabetes self-management education are warranted.