Background: Metabolic-related fatty liver disease (MAFLD) usually presents together with type 2 diabetes mellitus (T2DM), with subsequent advancing hepatic steatosis and increased systemic inflammation. Sodium-glucose cotransporter 2 (SGLT2) inhibitors, which are a new group of glucose-lowering drugs, have proven extensive cardiometabolic benefits. Nonetheless, their distinct effects on hepatic fat accumulation as well as on inflammatory markers among T2DM subjects with MAFLD remain less comprehensively understood. Methods: In this 24-week, prospective, randomized trial, 120 adult subjects with T2DM and imaging-confirmed MAFLD received either empagliflozin 10 mg/day or dapagliflozin 10 mg/day (as an add-on to current antidiabetic therapy) or continued on standard care alone. Hepatic steatosis was measured by the controlled attenuation parameter (CAP) with a FibroScan device at the beginning of the study and at week 24. Biochemical markers of hepatic function (alanine aminotransferase [ALT] and aspartate aminotransferase [AST]) and inflammation (C-reactive protein [CRP] and interleukin-6 [IL-6]) were assessed at both visits. Results: Patients in the SGLT2 inhibitor arm showed a remarkable reduction in CAP readings, representing a mean reduction of 35 dB/m (p<0.01), suggesting enhanced hepatic steatosis. Concomitant reductions in levels of ALT, AST, CRP, and IL-6 were also noted (p<0.05 for each) versus the control arm. Furthermore, patients on SGLT2 inhibitors had modest but significant improvements in glycemic control and body weight. No severe adverse events were noted. Conclusion: In more than 24 weeks, the addition of an SGLT2 inhibitor to usual diabetes care considerably improved liver fat content and inflammatory markers in T2DM and MAFLD patients. These results highlight the dual benefit potential of SGLT2 inhibitors in improving metabolic profiles and providing hepatoprotective effects in this high-risk patient group.