Introduction: The menopausal transition is a vulnerable period for developing obesity that predicts the future incident of developing type 2 diabetes mellitus (T2DM) and cardiovascular disease. Metabolism of lipid in diabetes is affected by insulin resistance and its deficiency. Objective: To find the correlation of body mass index with lipid profile and Estradiol in postmenopausal women with type 2 diabetes mellitus by examining the level of lipid profile and Estradiol based on BMI. Methods: A total of 120 postmenopausal females with type 2 Diabetes Mellitus were enrolled in the study. Venous blood was taken and analysed for total cholesterol, triglycerides, HDL-C, LDL-C, fasting glucose and estradiol. The height and weight of each patient were recorded. BMI was calculated and was categorized as normal,(__ampersandsignlt;18.5-24.9 kg/m2) overweight (25-25kg/m2), and obese (__ampersandsignlt;30). Results: Among the lipid parameters, significantly raised the level of TG 139 + 31 (p __ampersandsignlt; 0.04) and low levels of HDL 31 + 2.9, (p__ampersandsignlt; 0.03) were observed in the obese postmenopausal female when compared with the normal and overweight individual. A significantly higher Estradiol level was found in obese diabetic women (p__ampersandsignlt;.0.05). A strong positive correlation was observed between Estradiol and TG with BMI and was negatively correlated with HDL-C. Conclusion: Obese post-menopausal with diabetes exhibit high atherogenic risk profile and raised concentration of Estradiol.