Background: Amongst diabetes, type 2 diabetes encompasses more than 80% and even higher percentage is present in un-industrialized countries. Kidney disease in diabetic patients is clinically characterized by increasing rates of urinary albumin excretion, starting from no albuminuria, which progresses to microalbuminuria, macro-albuminuria and eventually to End Stage Renal Disease. Dyslipidemia is observed in patients with DM and microalbuminuria. Total cholesterol increases significantly with albuminuria. Objectives: Frequency of hypercholesterolemia in recent onset type-2 diabetics with microalbuminuria. Study design: A cross-sectional study.Place and Duration: The study was conducted in Department of Endocrinology & Metabolism, Jinnah Hospital Lahore. Study was conducted and completed over a period of 12 months from October, 2018 to September, 2019.Methodology: It was a cross-sectional survey with non-probability, purposive sampling technique. 200 patients fulfilling the criteria were enrolled. Informed consent was obtained. Demographic information of each patient was noted. Urine was obtained and samples were sent to the laboratory of the hospital and reports were assessed. If the value of albumin is raised in urine analysis (as per operational definition) then albuminuria was labeled. In patients who were diagnosed as with albuminuria, total cholesterol was noted. If cholesterol was > 240 mg/dl, then hypercholesterolemia was labeled by researcher himself. Results: 200 patients were recruited to determine the frequency of microalbuminuria and dyslipidemia in newly diagnosed diabetic patients. Age distribution of the patients was calculated where most of the patients were recorded between 40-50 years of age i.e. 38% (n=76), 27.5% (n=55) were recorded between 51-60 years, 21% (n=42) were between 61-70 years and 13.5% (n=27) were recorded between 71-80 years of age, the age range was 40-80 years, Mean ± SD was calculated as 54.87 ± 4.23 years. Frequency of microalbuminuria in newly diagnosed diabetic patients was recorded in 9.5% (n = 76) while 62% (n = 124) were not presented with microalbuminuria. Frequency of dyslipidemia in newly diagnosed diabetic patients out of 19 cases was recorded in 63.16% (n = 12) while 36.84% (n = 7) had no findings of dyslipidemia.Conclusion: The results of the study conclude that frequency of microalbuminuria among patients of newly diagnosed type-2 diabetic mellitus is in agreement with other studies while the frequency of hypercholesterolemia in patients with microalbuminuria was also recorded higher which needs special physicians attention for its timely management so that patients can be prevented from severe cardio vascular morbidities and mortality. Keywords: Diabetes Mellitus Type 2, micro-albuminuria, hypercholesterolemia.