Introduction: Involvement of the liver is frequently reported among patients with dengue infection, and liver enzymes are commonly deranged in dengue infection. Raised levels of alanine aminotransferase (ALT) in dengue infection were linked to worse outcomes. The present study was an attempt to study the liver function test abnormalities in dengue fever (DF) and its correlation with the severity of the disease. Methods: The present study was undertaken as a hospital-based retrospective study of DF patients in the age group of 15–60 years. Five hundred and thirty patients who met the eligibility criteria and were admitted to the study hospital during the duration of data collection period (July 2018 to July 2021), comprised the study sample. Differences in means were tested using ANOVA or Kruskal–Wallis test. The difference in proportions was tested using the Chi-square test. Results: Majority of the patients were males (73.4%) with a mean of 30.3 ± 9.7 years. A significant association was observed between clinical features of jaundice, hepatomegaly, splenomegaly, ascites, effusion, bleeding, organ failure, and severe forms of DF. There was a significant positive correlation between aspartate aminotransferase, ALT, and serum bilirubin values among patients with severe forms of DF. Conclusion: Significant proportions of patients with DF without warning signs and severe DF had deranged liver function parameters. A statistically significant association was observed between liver function parameters and the severity of dengue disease.