Background: In chronic alcoholics, continuous heavy drinking leads to progression of alcoholic liver disease (ALD) from alcoholic fatty liver, hepatitis to cirrhosis. Strict abstinence from alcohol has its own limitations and there is paucity of promising drugs available to treat ALD. Malotilate showed promising hepatocyte regenerating capacity and ability to prevent such damage. Aims: The objective of this study was to evaluate curative effect of malotilate on ALD in rats. Methods: The study was done using Sprague Dawley rats. 5 groups were treated as: 1. Control: ethanol 40% v/v (orally 1ml / 100 g / d), 2. Vehicle control: Methyl Cellulose and 3, 4, 5: malotilate, three doses 25 (Low), 50 (Moderate), 100 (High) mg /kg / d orally, respectively. In all groups: ethanol was given initially for 21 days. Then vehicle or malotilate was administered for next 21 days. The liver damage was assessed biochemically on day-1, day-22, day-43 by measuring serum AST, ALT, ALP, GGT, total bilirubin, direct bilirubin, total protein, albumin and prothrombin time. The histo-pathological assessment of liver damage was done on day-43. Results: This study demonstrated that malotilate favorably altered all the biochemical parameters and the histopathology scores of liver damage in malotilate treated groups. Conclusions: malotilate showed hepatic structure regenerative and hepatic function restorative effect in ALD. This study indicated that malotilate may be useful in treating established ALD in alcoholics.