INTRODUCTION: Present study was aimed to identify association between presence of anemia and severity of Diabetic Retinopathy (DR) among diabetic patients. MATERIAL AND METHODS: The present study was observational with cross–sectional study design. It was conducted on patients with history of type 2 DM attending outpatient department of Ophthalmology of Pravara Rural Hospital were included in the study. All patients were subjected to Direct and Indirect Ophthalmoscopy for detection and classification of DR. Hemoglobin levels of patients were recorded and classified as non–anemic and anemic. RESULTS: Out of 1377 patients screened , 318 patients (23.09 %) had Diabetic Retinopathy. Of 318 patients 179 (56.3%) were males while 139 (43.7%) were females. Most patients belonged to stage I DR (158, 49.6%) followed by stage II DR (94, 29.5%). Anemia was present in 257 (80.8%) patients. Comparing the number of patients with respect to presence or absence of anemia with staging of DR, no statistically significant difference was observed. CONCLUSION: The occurrence of DR in the study was 23.09%. Most patients belonged to stage I DR (158, 49.6%) followed by stage II DR (94, 29.5%). Anemia was present in 257 (80.8%) patients. There was no association between presence anemia and staging of DR.