Introduction: Type 2 diabetes mellitus accounts for more than 90% of all patients with diabetes worldwide. According to ADA, microalbuminuria is defined as levels of urinary protein from 30 to 300 mg/day or 20 mg/minute, or 30 to 299 mg/ mg creatinine. Methodology: 250 out patients of type 2 diabetes mellitus were selected at random. Based on levels of albuminuria the patients were categorized into normoalbuminuria with <30 mg/gm of creatinine, microalbuminuria with 30- 300mg/gm of creatinine, and macroalbuminuria with >300mg/gm of creatinine. Results: In the present study, Serum Triglyceride was 116+43.9mg/dl, Serum Total cholesterol 154±39.mg/dl, HDL was 45.4+10.8mg/dl, and LDL was 96.3+29mg/dl and there were  significant correlations of microalbuminuria with reference to duration (1-5 years since diagnosis) (p-value<0.10) and HbA1C >7%, total cholesterol >200 mg/dl, serum triglycerides >150 mg/dl, HDL <35 mg/dl and  hypertension (p value<0.05). Conclusion: Microalbuminuria is associated with various microvascular and macrovascular co-morbidities of diabetes. Microalbuminuria  in  itself  being a predictor of diabetic nephropathy showed positive association with diabetic neuropathy and diabetic retinopathy (microvascular complications).