Objective: Diabetes mellitus (DM) is a serious, chronic and the most common metabolic abnormality of carbohydrate in which glucose is not metabolized by the cells due to insufficient or inefficient insulin, affecting an estimated 422 million adults in 2014, compared to 108 million in 1980. The global prevalence has nearly doubled since 1980, rising from 4.7% to 8.5% in the adult population. Lipid profile is deranged due to underutilization of glucose leading to cardiovascular complications. Abnormal lipid level in blood is well related with chronic complication of DM. This study intends to find correlation among reference interval of lipid derived for Nepalese population and clinically diagnosed cases of type II DM. Methods: In this study 100 each clinically diagnosed type II Diabetes and healthy controls were included. Fasting blood samples were drawn under aseptic precautions from cases of DM and healthy controls. All the sera were measured collectively for lipid profile, values were tabulated for cases, and controls separately for statistical evaluation..This study is planned to compare the lipaemic changes in diabetes mellitus patients admitted in inpatient department of Tribhuvan University Teaching Hospital Results: Lipid profile parameters of clinically diagnosed type II DM patients is significantly (P < 0.001) high except HDL as compared to healthy controls. The mean ± SD for age of patients with type 2DM and healthy controls subjects were Age (51.34 + 11.76) and (39.86 + 11.17) Blood Glucose (Glu) (11.54 + 3.58) and (4.83 + 0.83),Total Cholesterol TC (5.29 + 0.86) and (4.18 + 0.92) Triglycerides (TG) (2.46 + 1.39) and (1.51 + 0.85) LDL Cholesterol (LDL-C) (3.16 + 0.73) and (2.31 + 0.84) HDL Cholesterol (HDL-C) (0.84 + 0.34) and (1.08 + 0.24)) respectively. Conclusion: All lipids except HDL-C were significantly higher in diabetic cases as compared to healthy controls. There was significant correlation between FBS and TC, TG, LDL-C and HDL-C in DM patients. This reflects an increase in associated risk factors such as being overweight or obese.