Objective: To evaluate serum lipids in children with type 1 diabetes mellitus and its relation to glycemic control, in comparison with matched controls., Setting: Basrah Maternity and Children Hospital, Basrah, Iraq., Method: Lipid profile was studied in 32 children (17 males and 15 females) with type 1 diabetes mellitus from October 1999 to September 2000. Seventy seven non-diabetic children (35 males and 42 females) admitted with acute illness in the same hospital were selected as controls., Results: The age and BMI was similar in both groups. The mean total cholesterol, triglycerides, HDL-C, LDL-C, VLDL-C and LDL-C/HDL-C ratio were significantly higher in diabetic children compared to control group. There was no significant difference in the levels of Apo O and Apo B in both groups., Conclusion: Children with type 1 diabetes should be screened for serum lipids as significant lipid abnormalities are related to glycemic control. Both can be improved with dietary management and insulin therapy.