Abstract Background: Diabetes mellitus (DM) is a major health hazard today. Clinically significant macular oedema (CSME) is the most frequent cause of decreased vision in diabetic patients. The aim of our study was to determine whether CSME in subjects with type 2 DM is associated with lipid profile abnormalities and to compare them with lipid profiles of type 2 diabetics without CSME. Method: This was a cross-sectional case-control study. Hundred consecutive type 2 diabetic patients, 50 patients with and 50 without CSME, who attended the Retina outpatient clinic of a tertiary eye hospital over a one-year period, were included. Determination of the presence of CSME and staging of diabetic retinopathy was done according to modified Early Treatment Diabetic Retinopathy Study guidelines, by a single investigator using slit-lamp biomicroscopy. After obtaining informed consent, blood was drawn from the subjects after overnight fasting. Investigations done were lipid profile, fasting blood sugar, glycated haemoglobin (HbA1c), blood urea, and blood pressure measurement. Results: In our study, only two systemic factors weighed in as predictors of macular oedema: Systolic hypertension and serum lipids. Subanalysis of the lipid fractions yielded two significant correlates of CSME: Total cholesterol and serum triglycerides. Conclusion: A multifaceted healthcare team approach is essential for the management of diabetic patients. Ophthalmologists should evaluate the lipid profile of all diabetic macular oedema (DME) patients. Physicians should promptly refer diabetic patients with deranged lipid profiles to ophthalmologists to look for DME and provide appropriate ophthalmic care.