Liver cirrhosis is a progressive disease that involves inflammation and fibrosis. Pulmonary complications include hypoxemia, hepatopulmonary syndrome and portopulmonary hypertension. The aim is to investigate impairment in PFT and hypoxemia to determine relation to severity of liver cirrhosis. Methods: 100 patients with liver cirrhosis aged from 18years to 60years. Not smokers or have cardiac diseases or any pulmonary problem. Patients subjected to history taking, clinical examination, chest X-ray, Complete Blood picture, Fasting Blood Glucose, Liver Profile, hepatitis markers for B and C virus, Abdominal U/S, and Pulmonary function tests (Arterial Blood Gases and Spirometry). Results: the study revealed that 30% of the patients had hypoxia which more common in child C and patients with ascites. Restrictive Pulmonary function present in 46% of the patients and more common in patients with ascites.Conclusion: patients suffering from severe liver cirrhosis and ascites, presented with reduction in PaO2 and SaO2 in association with restrictive pulmonary function pattern (up to 88.2% of patients with massive ascites). As a result, pulmonary resistance is impaired and patients are more likely succumb to infection and adult respiratory distress syndrome. Thus prognosis in those patients is poor on the basis of both hepatic and pulmonary disease.