Fatty liver disease is a condition where there is accumulation of fats within the liver. Fatty liver can be caused by alcohol or some other causes. Diabetes is a risk factor for the occurrence of non-alcoholic fatty liver disease (NAFLD). This condition is seen commonly in type 2 diabetes mellitus but can also occur in type 1 diabetes mellitus. Factors that cause fatty liver with diabetes are increased bad cholesterol level, increased triglyceride level, obesity, insulin resistance, and poor glycemic control. Early stages of fatty liver with diabetes called steatosis usually do not lead to any symptoms. If it is not treated early, it may progress to inflammation of the liver, fibrosis and finally cirrhosis. Some of the symptoms of fatty liver with diabetes are right-sided abdominal pain, jaundice, fatigue, loss of weight, loss of appetite, nausea, and vomiting. Fatty liver with diabetes increases the risk of cardiovascular diseases, stroke, liver cancer, and kidney disease.