Background: Diabetes mellitus type 2 is a metabolic disorder characterized by hyperglycemia, hyperinsulinemia and insulin resistance. Insulin activity is essential for maintaining glucose homeostasis and insulin resistance leads to impaired glucose tolerance which in turns cause development of diabetes and also effects serum lipids. Quantification of insulin and its association with insulin resistance and serum lipids is essential in guiding treatment options and predicting diabetes risk. Methods: A case-control was conducted, recruiting 45 type 2 diabetes patients and 45 age/sex matched healthy controls.FBS, HbA1c, lipid profile, insulin, LCAT and Apolipoprotein A-1 was estimated and HOMA-IR was calculated. All study parameters were compared between both the study groups and the association of insulin and HOMA-IR with these parameters were examined. Results: Diabetic cases have significant higher level of FBS, HbA1c, total cholesterol, TG, LDL and VLDL than controls, whereas HDL, LCAT and Apolipoprotein A-1 levels were significantly higher in controls than diabetic cases.Insulin levels in patients (28.49 ± 11.31) was significantly higher than controls (5.96 ± 1.78). Calculated HOMA-IR was significantly increased in diabetic group. Insulin had significant positive correlation with HOMA-IR. Conclusion: Insulin and HOMA-IR activity is significantly increased in patients with type 2 diabetes and had non-significant positive association with LCAT, Apolipoprotein or lipid profile A-1in type 2 diabetic cases.