Diabetic dyslipidemia is immensely common in type 2 diabetes (T2DM), affecting about 70% of patients. It is a bundle of lipoprotein abnormalities characterized by increased triglyceride levels, decreased levels of high-density lipoprotein cholesterol, and increased levels of small, dense low-density lipoprotein (LDL). Diabetes and dyslipidemia are two independent risk factors for atherosclerosis with overlapping pathophysiology. Together, they accelerate the process of atherogenesis and exponentially increase cardiovascular risk. For atherosclerotic cardiovascular disease (ASCVD), diabetes is a significant risk factor, and the most important predictor of ASCVD events in T2DM is LDL cholesterol. This review aims to discuss the pathophysiology and management of diabetic dyslipidemia and provide an understanding of the topic, focusing on diabetes mellitus, followed by the metabolic changes caused by DM, understanding dyslipidemia and its lipid levels, and recent management goals.