This study was undertaken to determine the prevalence and characteristics of diabetic retinopathy (DR), as well as their relation to various other risk factors. An eighteen months hospital based study was conducted of 282 patients who were presented with diabetes at the Afshar Diabetic Center in Yazd. 37.2% of the patients were males and the rest (62.8%) were females. The incidence of DR and its relation with the duration of diabetes, age, sex, FBS, blood pressure and lipids was evaluated. 14% of the cases had IDDM type, while 86% of the cases were shown with NIDDM. In addition, 38% of the individuals were presented with DR. the duration of diabetes, hypertension, and age were significantly correlated with the prevalence of DR. however, sex, smoking, blood lipids and sugar, were not significantly related of DR. in addition to the patient age, the duration, type of diabetes and hypertension were risk factors for retinopathy. Examination of the retina in diabetic patients with full mydriasis in the first admission is recommended in order to prevent the loss of vision.