BACKGROUND The relationship between liver enzymes like alanine aminotransferase (ALT), aspartate aminotransferase (AST), Alkaline phosphatase (ALP) and diabetes has been studied, but the results of these are inconsistent. Several prospective studies have reported that ALT was associated with incident diabetes. We wanted to study the levels of serum alanine aminotransferase (ALT), serum aspartate aminotransferase (AST) and serum alkaline phosphatase (ALP) in patients of Type 2 DM. METHODS This is a hospital based observational study which was conducted in Narayan Medical College and Hospital, Jamuhar, Sasaram, Rohtas, Bihar. Alanine aminotransferase (ALT), aspartate aminotransferase (AST), alkaline phosphatase (ALP), glycosylated haemoglobin (HbA1c), FBS, PPBS, total bilirubin, and hepatitis B surface antigen (HBsAg) were determined in all study participants. RESULTS The mean value was 96.35, 67.37, 152.78 and 1.098 for AST, ALT, ALP and total bilirubin. On multivariate analysis for effect of FBS, PPBS, HbA1c on the value of AST weak correlation was found with R square of 0.11. On the effect of FBS, PPBS, HbA1c on the value of ALT we found weak correlation with an R square of 0.079. CONCLUSIONS There is a weak correlation between deranged liver enzyme (AST, ALT and ALP) with HbA1c, FBS and PPBS. But still, liver functions should be monitored in diabetic patients. KEYWORDS ALT, AST, Diabetes, HbA1c, FBS, PPBS