Objectives: To determine the frequency of hypothyroidism in type II diabetic patients and to compare the lipid profile of diabetic patients with and without hypothyroidism. Study Design: Cross Sectional Study. Setting: Medicine Unit I Shaikh Zayed Hospital Lahore. Period: 5th August 2016 to 5th February 2017. Material & Methods: A total of 350 patients, aged 35-80 years, of both gender and having type II DM diagnosed at least 1 year ago were enrolled in our study. Fasting (12hr) blood samples were obtained and sent to the laboratory for measurement of serum TSH, total cholesterol, LDL and TGs. Patients with TSH value >10 μg/ml were labeled as hypothyroid. Two groups (hypothyroid diabetic and euthyroid diabetic) were made and lipid profile was compared in both groups. Results: Frequency of hypothyroidism in type II diabetic patients was recorded as 13.42% (n=47). When lipid profile of hypothyroid diabetic patients (group I) was compared with euthyroid diabetics (group II), it was noted that patients in group I had mean total cholesterol of 170.32 ± 12.90 mg/dl whereas in group II, it was 138.81 ± 28.89 mg/dl. Mean triglyceride level in group I was 176.21 ± 15.98 mg/dl, whereas in group II, it was 151.02 ± 27.78mg/dl. Mean LDL in group I was 87.17±15.97mg/dl, and 71.35±20.40 mg/dl in group II. Conclusions: Frequency of hypothyroidism in type II diabetic patients is higher as compared to general population. Moreover, dyslipidemia is significantly higher in hypothyroid diabetics when compared with euthyroid diabetics.