Dyslipidemia caused by abnormal lipid profiles significantly increases the risk of cardiovascular disease (CVD) in individuals with diabetes. Effective management necessitates a comprehensive approach that encompasses lifestyle modifications and pharmacological intervention. Lifestyle adjustments such as adopting a healthy diet and engaging in regular physical activity play a crucial role in managing dyslipidemia. Avoiding foods high in saturated fat, trans fat, and cholesterol, while incorporating high-fiber foods and omega-3 fatty acids, helps regulate lipid profiles. Regular exercise increases high-density lipoprotein (HDL) cholesterol levels, promotes weight loss, and aids in managing dyslipidemia. While behavioral changes are beneficial, pharmacological treatments are pivotal. Statins are the cornerstone for managing dyslipidemia in diabetic patients, regardless of standard lipid levels, due to their ability to lower low-density lipoprotein (LDL) cholesterol levels. Additional lipid-lowering agents such as ezetimibe, bile acid sequestrants, and PCSK9 inhibitors may complement treatment strategies to improve lipid profiles. The advancements include new formulations of antidiabetic medications that demonstrate favorable effects on lipid parameters in diabetic patients. Sodiumglucose co-transporter-2 (SGLT-2) inhibitors and glucagon-like peptide-1 receptor agonists (GLP-1 RAs) not only provide cardiovascular benefits but also aid in lowering lipid levels. SGLT-2 inhibitors reduce LDL cholesterol and triglyceride levels, while GLP-1 RAs primarily target triglycerides and LDL cholesterol levels.