This study was conducted on 180 diabetic patients and 20 persons as control group. The patients were divided into: group I 60 patients (NIDDM) on oral anti-diabetic treatment, group II 60 patients (NIDDM) on insulin treatment, group III 60 patients (IDDM) .For all, complete laboratory investigations and abdominal ultrasonography were done. There were increased incidence of fatty liver in group I and II and few cases with elevated liver enzymes. The liver functions and abdominal ultrasonography results of group III were nearly as the normal control group.