Background: Osteoporosis is currently a major cause of mortality, morbidity, and medical expense worldwide. Aim: This study was designed to detect the effect of raloxifene hydrochloride on bone mineral density (BMD) and serum lipids in Kuwaiti postmenopausal women with osteoporosis. Subjects and Methods: Eighty postmenopausal women, who received raloxifene 60 mg with calcium 500 mg and 200 IU Vitamin D daily for 2 years were included in this prospective study which was conducted from August 2011 to August 2013 after informed consent and approval of the study by hospital ethical committee. BMD measured by dual‑energy X‑ray absorptiometry (DXA) and serum lipids were assessed before and after the treatment to detect the effect of raloxifene on BMD and on serum lipids. Unpaired t‑test was used to compare lumbar spine, total hip BMD and serum lipid values before and after the raloxifene treatment. Results: Lumbar spine and total hip BMD were significantly increased from 0.92 (3.8) and − 0.83 (5.6); respectively before treatment to 3.21 (5.4) and 1.62 (7.4); respectively 2 years after treatment. Also, Ward`s triangle and trochanter BMD were significantly increased from 1.53 (6.6) and − 1.4 (6.4); respectively to 4.84 (9.3) and 1.78 (8.5); respectively. Total cholesterol and low‑density lipoprotein cholesterol were significantly decreased from 5.15 (4.5) and 3.82 (4.6) mmol/L; respectively before treatment to 3.57 (3.4) and 2.56 (3.7) mmol/L; respectively 2 years after treatment. While, changes in high‑density lipoprotein cholesterol and triglycerides after treatment were statistically insignificant. Conclusions: Raloxifene appears to be an effective, well tolerated option for treating osteoporosis in Kuwaiti postmenopausal women, suitable for long term use with favorable effect on serum lipid profiles.