The terminology for assessment of chronic viral hepatitis in liver biopsy specimens has become confusing with the proliferation of grading and staging schemes that have paralleled the rise of the hepatitis C epidemic and the importance of mixed viral infections. This review represents a personal approach to the interpretation of these biopsy specimens, aiming at clarifying and simplifying the important points for the general pathologist confronted by these diagnostic dilemmas. The most commonly used schemes-Ishak modification of the Knodell 'hepatic activity index', Scheuer, Metavir, Batts-Ludwig classifications-are presented with evaluation of their pros and cons. Which scheme is selected is less important than the consistent use of a single scheme and the clear naming of that scheme in pathology reports. The importance and clinical implications of identifying severe necroinflammatory activity in the form of 'confluent necrosis' is discussed. Pathologists must also be clear about assessing concomitant diseases, in particular, alcoholic or non-alcoholic fatty liver disease, and be aware that grading/staging schemes for chronic hepatitis do not apply to mixed disease conditions. Other important features to be evaluated in all chronic hepatitis biopsy specimens include iron (which may represent hereditary hemochromatosis or secondary uptake) and neoplasia-associated changes, namely large cell change and small cell change; these findings and their clinical import are updated and reviewed. Sample approaches to composing useful diagnostic reports are also presented. Modern Pathology (2007) 20, S3-S14. doi:10.1038/modpathol.3800693Keywords: grading; staging; chronic hepatitis; viral hepatitis; liver biopsy Once upon a time, the assessment of liver biopsy specimens from patients with chronic viral hepatitis was very simple. There were three categories created for us by the Gnomes (not fairytale, mythical, woodland folk, but 'an International Working Group' of liver pathologists): chronic persistent, active, and lobular hepatitis (CPH, CAH, and CLH, respectively).1 In addition, one would describe the scarring and the progression toward cirrhosis. These categories were sufficient because there were only three likely diseases to be dealt with: autoimmune hepatitis, hepatitis B, and non-A-non-B hepatitis. For the first two, these categories of histopathology were reasonably prognostic. Also, only autoimmune hepatitis had a treatment, which was immune suppression. As for non-A, non-B hepatitis, welly there wasn't much to be said for that beyond describing the histologic changes, knowing that CPH, CAH, and CLH were not predictive in those cases.Then things changed. Hepatitis C was discovered and the true extent of the epidemic was made clear. Antiviral treatments were developed that required assessments in clinical trials and detailed comparison between pre-and post-treatment biopsies. Continuing intravenous drug use in urban centers made mixed viral infections more common. Most liver biopsies were not performed for autoimmu...