Cardiovascular disease is more prevalent in type 1 and type 2 diabetes, and continues to be the leading cause of death among adults with diabetes. Although atherosclerotic vascular disease has a multi-factorial etiology, disorders of lipid metabolism play a central role. The coexistence of diabetes with other risk factors, in particular with dyslipidemia, further increases cardiovascular disease risk. A characteristic pattern, termed diabetic dyslipidemia, consists of increased levels of triglycerides, low levels of high density lipoprotein cholesterol, and postprandial lipemia, and is mostly seen in patients with type 2 diabetes or metabolic syndrome. This review summarizes the trends in the prevalence of lipid disorders in diabetes, advances in the mechanisms contributing to diabetic dyslipidemia, and current evidence regarding appropriate therapeutic recommendations.