In this study, the impact of quality of life on the prevalence of arthritis as co-morbid condition with type 2 diabetes is assessed and alteration of lipid biomarkers (HDL, LDL, TG and TC) and liver enzyme (ALT) with this co-morbidity cluster is observed. A cross-sectional analysis was conducted on 528 Type 2 Diabetes Mellitus patients in presence and absences of arthritis as a co-morbid condition. This analysis was conducted for a period of one and half year, from Jan 2014 to June 2015. The correlation of HbA1c with individual lipid indexes and liver enzyme were analyzed among the subjects. The mean age of patients was 53.2years. The male and female participants were in ratio 1:2.14. Female were more susceptible to arthritis as a co-morbid condition with T2D. BMI of the patients who had arthritis was great in number along with fewer chances to meet the recommended level of physical activity. Again, patients with arthritis, 72% of them were uncontrolled with their HbA1c, next to this situation TG and TC were seen to be elevated , p=0.12, p= 0.01 respectively. In addition to this, 54% of patients with uncontrolled HbA1c were experiencing with high LDL (p=0.02). However, High ALT levels of the patients with controlled and uncontrolled HbA1c level are 31 and 49% accordingly (p= 0.01).Patients with diabetes and arthritis co-morbidity face difficulties to control their HbA1c and this uncontrolled situation further lifted up other biochemical parameters like LDL, TG, TC and ALT.