Background: Non Alcoholic Fatty Liver Disease (NAFLD) is becoming modern hepatic pandemic and NAFLD coexisting in patients with diabetics is supposed to have reduced beta cell function. Patients with NAFLD who have type 2 diabetes are particularly at risk of developing NASH and they are at higher risk of developing cirrhosis, also have poor glycemic control owing to reduced beta cell function. So identifying the patients with diabetes having NAFLD and β cell functional status could estimates the future risk and help in slowing the progression and prevention of chronic liver disease and various complications of Diabetes. Material: This was a cross sectional observational study conducted in department of medicine, N.S.C.B., MCH, Jabalpur in which 100 cases of diabetes were taken who satisfied inclusion and exclusion criteria. Abdominal USG was used for evidence of fatty liver and it's grading and fasting serum levels of insulin (FIL) and fasting blood sugar (FBS) were used to calculate HOMA-β value to get beta cell function. Observation: HOMA-β values were calculated for all the patients of DM, which showed that lower mean HOMA-β values in patients with NAFLD and Diabetes i.e.37.56±24.03 as compared to 60.96±96.62 in Non NAFLD group of patients. β cell function was deranged in the patients with high BMI, Waist circumference. NAFLD group of patients have higher prevalence of diabetes related complications as compare to Non NAFLD group. Prevalence of NAFLD was slightly more in females-56.6%(n=30) as compared to males-55.32%(n=26).

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