Chronic liver disease (CLD) affects millions of people worldwide each year. Upon chronic liver injury, a wound healing process ensues, leading to the accumulation of extracellular matrix (ECM) proteins. If the injury persists, this leads to liver fibrosis with excessive scarring of the liver and loss of liver function. Lysophosphatidic acid (LPA), a signaling molecule, has shown to be involved in various biological processes, including the wound healing process. Elevated plasma levels of LPA and its catalyst autotaxin (ATX) have been detected in patients with liver fibrosis, suggesting a possible role of this signaling pathway in the development of liver diseases. This review focuses on the recent progress in studies on the LPA-ATX pathway and its involvement in liver fibrosis. This also includes the potential roles of the LPA pathway and ATX as a therapeutic target in liver fibrosis. The structural, functional and biochemical properties of LPA and ATX are also discussed.