Introduction: adiponectin seems to be secreted as a protective response to increased levels of pathologic adipocytokines as it possesses antidiabetic, antiatherogenic and anti-inflammatory properties. hypoadiponectinaemia is implicated in the pathogenesis of non-alcoholic fatty liver disease (NAFLD), insulin resistance and the metabolic syndrome (MetS) . Patients with obesity and co-morbid type 2 diabetes (T2DM) are at increased risk for NAFLD and cirrhosis compared to obese nondiabetic patients . Aim : This work was to correlate between serum adiponectin and abnormal liver enzymes (ALT and AST) in obese type 2 diabetic patients . Methods : Fasting serum was collected from 30 obese type 2 diabetic patients as patients group and 10 non diabetic obese subjects as control group. Clinical examination was done. Investigations (ALT , AST, fasting blood glucose , 2 hours post prandial blood glucose, C-reactive protein , ,Uric acid , HbA1c triglycerides ,Cholesterol HDL-cholesterol and adiponectin) were assessed . Adiponectin was measured using ELISA . Results : Serum adiponectin levels were significantly lower in type 2 diabetic obese patients than non diabetic obese subjects, serum adiponectin levels were significantly higher in female than male in obese type 2 diabetic patients also serum adiponectin levels correlated negatively with ALT , AST ,age ,systolic BP, diastolic BP, BMI , W/H ratio, fasting blood glucose ,2 hours post prandial blood glucose , C-reactive protein , HbA1c ,Uric acid , triglycerides and Cholesterol in type 2 diabetic obese patients. But it correlates positively with HDL-cholesterol in obese type 2 diabetic patients. Conclusion: Serum adiponectin levels correlated negatively with ALT and AST in type 2 diabetic obese patients .Hypoadiponectinaemia is implicated in the pathogenesis of non-alcoholic fatty liver disease (NAFLD), insulin resistance and the metabolic syndrome (MetS) .