Abstract          Introduction: NAFLD is becoming a major public problem worldwide. NAFLD is an emerging problem in the Asia-Pacific region and its overall prevalence at present is broadly similar to west. Based on surveys using ultrasonography, the prevalence of NAFLD in the general population across Asia varies from 5% to 40% Aims and Objectives: To Assess the risk of NASH with clinical predictor score associated with HFE gene mutation. Materials and Methods: The work embodied in this study was conducted at tertiary care Hospital. All the type 2 diabetic patients attending the OPD irrespective of their sex and treatment protocol were taken; it includes both old and new cases of type 2 diabetes. All the type 2 diabetic patients were subjected to ultrasonography to rule out the fatty liver. Type 2 DM with NAFLD was taken as cases and Type 2 DM without NAFLD was taken as controls. Biochemical parameter analyzed are fasting glucose, fasting insulin, serum iron, T.I.B.C and ALT.DNA was extracted from frozen whole blood to detect Cys282Tyr mutation. Based on HAIR score, the NASH was assessed in our NAFLD patients. Result: In our study population out of 100 type 2 diabetes patients, 54 of them had fatty liver. In our study population, cases had more female patients (59.2%) than controls (36.9%) and it was statistically significant (Chi square value x²= 4.94 and p<0.02). Fasting insulin and insulin resistance were significantly higher in cases (p< 0.05).Serum Iron and transferrin saturation were significantly raised (p<0.01) in cases when compared to controls. NAFLD patients had significantly higher ALT levels. In our study, 27.8% of patients had NASH based on HAIR score. HFE gene C282Y mutation was not found in our study population. Conclusion: Based on HAIR score, 27.8% of NAFLD patients might have NASH. NAFLD patients had significantly increased serum iron and transferrin saturation when compared to controls. None of our patients had HFE mutation.