Background: Hypercholesterolemia is one of the most overlooked metabolic disorders in diabetics. Hypercholesterolemia is associated with atherosclerosis which is fore runner of ischemic vascular disease including the coronary artery disease (CAD). Aim of the present study was to analyzed the cholesterol lowering potential of Allium sativum essential oil (ASEO) in hypercholesterolemia of type 2 Diabetes mellitus (T2DM). Study Design: Observational study Place and Duration of Study: This study was conducted at the Department of Medicine, Mayo Hospital Lahore, For the duration of one year, from September 2019 to August 2020. Materials and Methods: A sample of 79 diagnosed cases of T2DM was selected according to inclusion and exclusion criteria. 10 ml of venous blood was collected for the analysis of serum total cholesterol, blood glucose, glycated HbA1, BUN and serum creatinine. Ethical clearance of institute and informed consent were mandatory. SPSS 21.0 was used for data analysis at 95% confidence interval. Results: Blood glucose, HbA1c, serum creatinine and blood cholesterol showed significant reductions at third and sixth months compared to baseline. Serum cholesterol at baseline, third and sixth month was noted as 215.2±72.6 mg/dl, 190.7±81.6 mg/dl and 162.8±76 mg/dl respectively (p=0.0001). Conclusion: Allium sativum essential oil reduced hypercholesterolemia in diabetes mellitus. Allium sativum essential oil may prove helpful in treating hypercholesterolemia in diabetic patients as an adjunctive therapy for those intolerant to statin therapy. Key Words: Allium sativum essential oil, Hypercholesterolemia, Diabetes mellitus