Purpose: To compare the efficacy of carboxymethylcellulose (CMC) and polyethylene glycol (PEG) as tear substitutes for treatment of dry eye. Methods: A prospective randomized control study was conducted with a total of 100 dry eye patients divided into two groups. Group I was started on CMC 1% eye drops and group II on PEG containing eye drops (PEG 400 0.4%, propylene glycol 0.3%). Ocular Surface Disease Index (OSDI) scoring, tear break-up time, corneal and conjunctival staining scoring and Schirmer Test (ST) was done at baseline and then at 4 weeks and 6 weeks. Results: OSDI score and corneal staining score were significantly better in group II compared to group I at 6 weeks. Group II also showed early improvement in OSDI score and conjunctival staining score from baseline to 1 week follow up. TBUT, conjunctival staining score and ST did not show any significant difference between the two groups. Conclusion: PEG containing eye drops provide quicker and better subjective improvement and better corneal staining scores compared to CMC 1% eye drops. However, other clinical parameters tested don’t show a significant difference between the two treatment options.