Background: People who do not consume alcohol in amounts that are generally considered harmful to the liver are affected by a collection of illnesses known as nonalcoholic fatty liver disease The present study was conducted to assess prevalence of non- alcoholic fatty liver disease and its correlation with coronary risk factors in patients with type 2 DM. Materials & Methods: 100 patients of type 2 diabetes of both genderswere divided into 2 groups of 50 each. Patients with NAFLD who had USG evidence of fatty liver changes were in group I, whereas patients without NAFLD who had no USG evidence of fatty liver changes were in group II. Diabetes's history and longevity were noted. Everybody had an ECG, and ischemia alterations were noted. One radiologist conducted the ultrasonographic assessment. Results: In group I, 28 were males and 22 were females and in group II, 26 were males and 24 were females. In group I and group II, BMI >25 kg/m² in 32 and 9, hypertension was seen in 37 and 25, smoking in 42 and 23, HbA1c (>7%) in 41 and 19, metabolic syndrome in 45 and 28, LDL cholesterol >160 mg/dl in 25 and 37, HDL (<50 mg/dl in females and <40 mg/dl in males) in 37 and 46, total cholesterol >200 mg/dl in 33 and 32, triglyceride >150 mg/dl in 40 and 24, ALT (> 50 IU/l in males and >35 IU/l in females) in 36 and 18 and AST (>40 IU/l) in 41 and 19 patients in group I and II respectively. The difference was significant (P< 0.05). Conclusion: The prevalence of non-alcoholic fatty liver disease (NAFLD) increases dramatically in people with type 2 diabetes. Obesity, hypertension, and dyslipidemia were significantly more prevalent in NAFLD patients than in those without the disease.