This work aimed to assess fatty liver (lipid content of the liver) in patients with type 2 diabetes mellitus and its correlation with BMI, W/H ratio, fat%, abdominal fat, glycemic control and lipid profile. Patients were selected from Kasr Alaini diabetes and endocrinology outpatient clinic randomly. All patients were subjected to history taking, physical examination, laboratory assessment for: Fasting blood glucose,2 hours post prandial blood glucose, HBA1C, triglycerides, cholesterol, LDL, HDL. Also patient were subjected to Computed tomography for assessment of the degree of liver steatosis, the ratio of liver to spleen (L/S ratio) as well the cross sectional area of the abdominal adipose tissue.This work showed that accumulation of fat has its metabolic derailment, and L/S ratio is related to waist hip ratio