Hepatitis C virus is a major puplic health problem and is considered the most common etiology of chronic liver disease in Egypt. Serum blood glucose and HbA1C are the most commonly measured in diabetic patients with hepatic disease. Diabetes may decrease response to interferon therapy and decrease early virological response.Aim of work: to chracterize the liver condition in diabetic HCV patients in comparison to non diabetics and to evaluate the early virological response and the end point of treatment of diabetic chronic HCV patients to compined interferon therapy.Patients and methods: the study was done on 2323 patients with chronic HCV who recived pegylated interferon and Ribavirin in EL-kahera EL-fatmya hospital. All patients were subjected to complete history taking, clinical examination, laboratory investigation, abdominal ultrasonography and liver biopsy. They were classified into 2 groups according to the presence or absence of diabetes mellitus.Group 1: non diabetic patients.Group 2: diabetic patients.Result: there was significant correlation between diabetes and degree of inflammation and the stage of fibrosis in liver biopsy. There was no significant correlation between EVR or response at 24 weeks between diabetics and non diabetics. There was significant correlation between liver enzymes (ALT,AST), age and BMI and diabetes.