Retinopathy is a common complication of diabetes and strongly related to the duration of the disease and the quality of its management. Despite this relationship, some studies have reported the prevalence of diabetic retinopathy at diagnosis to be 5-30%. We investigated the prevalence of retinopathy in patients with newly diagnosed type 2 diabetes and its relation to some association factors in Isfahan, Iran. During 2001-2004, all newly diagnosed type 2 diabetics (n=710) attending Isfahan Endocrine and Metabolism Research Center, were enrolled, by consecutive patient selection. Everybody accepted our invitation. The patients were examined by an internist and then by an ophthalmologist for retinopathy. Fasting plasma glucose, glycosylated hemoglobin, lipid profile, and 24-hour urinary albumin and creatinine concentrations were measured. The results show that of 7 10 patients, 286 were male. The mean age of the patients was 48.8(9.8) years (31-72 years) and median of diabetes duration was 6 months (0.5-12 months), respectively. Nine percent of patients (CI95%: 7-11) [(9.8% of men (CI95%: 6-13) and 8.5% of women (CI95%: 6-11)] had retinopathy (Odds ratio=0.85, CI95%: 0.51-1.43, P=0.5). 111 the final analysis using logistic regression test, body mass index (OR=0.9, CI 95%: 0.8-1, P=0.01), diastolic hypertension (OR=3.9, Cl 95%: 1.33-11.7, P=0.01) and 24-hour urinary albumin concentration (OR= 1.005, CI 95%: 1-1.01, P=0.01) were identified as association factors for retinopathy. In conclusion, retinopathy was moderately prevalent in our patients.