Objective To investigate the prevalence of diabetic retinopathy (DR) and its risk factors in type 2 diabetes mellitus (T2DM) inpatients of Shanghai region. Methods A total of 2454 T2DM inpatients were included. Clinical data were collected and the levels of DR were assessed with non-mydriatic retinal photographs according to the Diabetic Retinopathy Disease Severity Scale. The prevalence of DR and its risk factors were analyzed using trend analysis and logistic stepwise regression analysis. Results The prevalence of DR in T2DM inpatients was 32.7%. With the increment of age, diabetes duration and HbA1c levels, the prevalence of DR increased consequently (P＜0.05). The risk factors of retinopathy in T2DM patients included diabetes duration (OR＝1.107, 95% CI 1.089-1.125, P＜0.0001), glycated hemoglobin (OR＝1.071, 95% CI 1.024-1.119, P＝0.0026) and systolic blood pressure levels (OR＝1.016, 95% CI 1.010-1.022, P＜0.0001). The age of T2MD onset was also associated with DR(OR＝0.991, 95% CI＝0.981～1.000, P＝0.0556). Conclusions The prevalence of DR is relatively high in T2DM inpatients. Duration of T2DM, status of glycemic control and hypertension are independent risk factors for T2DM patients.