AimThe response rate to pioglitazone and the predictive factors for its effects on improving liver biochemistry in patients with steatotic liver disease (SLD) remain elusive, so we aimed to investigate these issues.MethodsA 3‐year prospective cohort study of 126 Taiwanese patients with SLD treated with pioglitazone (15‐30 mg/day) was conducted. Phospholipase domain‐containing protein 3 I148M rs738409, methylenetetrahydrofolate reductase rs1801133, aldehyde dehydrogenase 2 (ALDH2) rs671 and lipoprotein lipase rs10099160 single nucleotide polymorphisms were assessed in the patients.ResultsOf 126 patients, 78 (61.9%) were men, and the mean and median ages were 54.3 and 56.5 years, respectively. Pioglitazone responders were defined as those with decreased alanine aminotransferase (ALT) levels at 6 months post‐treatment, and 105 (83.3%) patients were responders. Compared with non‐responders, responders were more frequently women and had higher baseline ALT levels. The proportion of patients with the ALDH2 rs671 GG genotype was lower among responders (38.6% vs. 66.6%, p = .028). Female sex [odds ratio (OR): 4.514, p = .023] and baseline ALT level (OR: 1.015, p = .046; cut‐off level: ≥82 U/L) were associated with pioglitazone response. Among responders, the liver biochemistry and homeostasis model assessment of insulin resistance improved from 6 to 24 months post‐treatment. The total cholesterol levels decreased within 6 months, while increases in high‐density lipoprotein cholesterol levels and decreases in triglyceride levels and fibrosis‐4 scores were noted only at 24 months post‐treatment. The 2‐year cumulative incidences of cardiovascular events, cancers and hepatic events were similar between responders and non‐responders.ConclusionsRegarding liver biochemistry, over 80% of Taiwanese patients with SLD had a pioglitazone response, which was positively associated with female sex and baseline ALT levels. Insulin resistance improved as early as 6 months post‐treatment, while liver fibrosis improvement was not observed until 24 months post‐treatment. The link between the pioglitazone response and the ALDH2 genotype warrants further investigation.