A low-viscosity topical ophthalmic composition for treatment of dry eye is disclosed. In preferred embodiments, the composition comprises as active ingredients hyaluronic acid or a pharmaceutically acceptable salt thereof and polyvinylpyrrolidine, and has a viscosity of 15 cP or less. In other embodiments of the invention, the composition additionally comprises polyvinyl alcohol. Methods of preparation of the composition are disclosed, as well as methods for use of the composition in the treatment of dry eye.