Background: Diabetes mellitus (DM) is a syndrome of disordered metabolism with abnormally high blood glucose levels (hyperglycemia). In Type-2 DM (T2DM), the loss of direct effect of insulin to suppress hepatic glucose production and glycogenolysis in the liver causes an increase in hepatic glucose production. Hence, this study was intended to study the activity of serum alanine aminotransferase (ALT) and serum aspartate aminotransferase (AST) in T2DM patients and compare it with that of normal healthy controls. Methods: A total of 100 patients of both sexes suffering from T2DM and 50 age and sex matched healthy individuals were selected for the study. From the subjects Fasting blood samples were drawn. Biochemical parameters like fasting blood glucose, liver enzymes (ALT and AST) and HbA1c were estimated in the samples. Results: The mean activity of serum ALT was significantly higher in diabetic patients as compared to controls while AST showed non-significant difference between patient and controls. Along with this, significantly increasing pattern of serum ALT level was found as duration of disease increased. While serum AST level was non-significant as duration of disease increased. Conclusion: The outcomes of the present study suggest that among the liver aminotransferases enzymes (ALT) have shown higher activity with T2DM patients than individuals who do not have DM. Hence routine monitoring of LFT along with other routine investigations in patients with type 2 diabetes is recommended.