Introduction: Diabetic retinopathy (DR) is a common microvascular complication of diabetes mellitus (DM), and albuminuria is an early marker of microvascular endothelial damage. Aim: To determine the relationship between retinopathy and albuminuria in type 2 DM patients attending the diabetes clinic of Obafemi Awolowo University Teaching Hospitals Complex, Ile-Ife Methodology: This was a cross-sectional study conducted on 208 consecutive pre-diagnosed type 2 DM patients. Participants had a complete ocular examination after taking relevant history and general systemic examination. Blood samples were collected for fasting blood glucose and glycated haemoglobin. Spot urine sample was also collected to assay for urine albumin and creatinine ratio. Results: There were 104 males and 104 females, with a male to female (M: F) ratio of 1:1. The mean age was 65.0years (±10.6 years). Ninety (43.30%) participants had diabetic retinopathy, of which 13(14.4%) had mild, 15(16.7%) had moderate, 27(30.0%) had severe and 35(38.9%) had proliferative diabetic retinopathy. The prevalence of diabetic macular oedema was 23.1%. Seventy two (34.6%) had albuminuria, out of which 58(80.6%) had microalbuminuria and 14 (19.4%) had macroalbuminuria. There was a statistically significant relationship between the presence and severity of retinopathy and albuminuria (p-value < 0.001, r=0.722). It was observed in the multivariate analysis that the adjusted odds of type 2 diabetes patients with elevated albuminuria having DR is 41 times (OR 40.9, 95%CI 14.89-112.37, p 0.000) compared with those with normal levels of albuminuria. The cut-off value of albuminuria for predicting retinopathy was at 29.6mg/g and above with a diagnostic xvi accuracy of 0.851 (p-value < 0.001, 95% CI = 0.795-0.896), sensitivity of 72.2%, specificity of 94.9%, positive predictive value of 91.56%% and negative predictive value of 81.8%.