To review the hepatic morphological feature in diabetic patient with impaired liver function, we obtained specimens of liver tissue by needle biopsy from 15 adult-onset diatbetic patients. Morphologic feature were assessed with light microscopy. The results were as follows. 1. Mean FBS level was 171 mg/100ml. 2. Mean values of liver function test were SGOT 134 units, SGPT 152 units, alkaline phosphatase 3.6 Bessey-Lowery units, prothrombin time 15 sec.,and serum total cholestrol 116 mg/100ml, respectively. 3. The morphological classification of liver damage of the patients revealed 7cases(46.7%)of chronic active hepatitis, 6case (46%) of liver cirrhosis, 1 case (6.7%) of alcholic hepatitis and 1 case (6.7%) of chronic persistent hepatitis. 4. All patients were treated with insulin. The mean daily requirement of insulin was 41 units. In diabetic patients with impaired liver function, the most common type of liver damage was chronic active hepatitis, next was liver cirrhosis. We couldn't pjrove its mechanism; further evaluation is needed in many other patients.