Background: Hyponatremia is the most common electrolyte abnormality seen in patients of Chronic Liver Disease(CLD).Hyponatremia is considered as a potential risk factor for the development and worsening of Hepatic Encephalopathy.This study is conducted to find association between serum sodium levels and stages of Hepatic Encephalopathy.To assess Hyponatremia as a prognostic marker in patients of Chronic Liver Disease. Objectives: To measure serum sodium values in patients of Decompensated Chronic Liver Disease over the period of 14 days and determine its association with various grades of Hepatic Encephalopathy. Study design: Case control study conducted in Guru Nanak Dev Hospital (GNDH), Amritsar from 2023-2024. Materials and methods: Study was conducted on 100 patients(cases) of CLD with overt Hepatic Encephalopathy admitted in GNDH and 100 patients(controls) of CLD without Hepatic Encephalopathy presenting with other complications and patients were studied for duration of 14 days.Patients with acute intracerebral infarct or haemorrhage, with hepatorenal syndrome, patients with sepsis and positive blood cultures and history of drug intake such as diuretic, narcotics and valproic acid were excluded. Results: Out of 100 cases 91 were males and 9 were females with mean age 49.79+13.52 years. Out of 100 controls 74 were males and 26 were females with mean age of 49.07+11.34 years. Alcohol was the most common cause of cirrhosis in both cases and control. Patients were divided into 4 groups based on serum sodium levels into:<120mEq/l,121-130mEq/l,131-135mEq/l and >135mEq/l. Cases showed statistical correlation between hyponatremia and Child Pugh Class (p value<0.05). Cases also showed positive correlation between Serum sodium levels and MELD score (p value<0.05). From day 1 to day 14 with improving serum sodium levels, patients shifted from higher grades to lower grades of Hepatic Encephalopathy with p value 0.001. Study showed correlation of hyponatremia with mortality in these patients with p value<0.05. Conclusion: Serum sodium levels may be used as a prognostic marker in patients of Hepatic Encephalopathy. Lower levels of serum sodium correlated with increased MELD score and increased Child Pugh Class, indicating inverse relationship between hyponatremia and severity of disease. Thus, patients with hyponatremia should be considered a high-risk population because of increased frequency of complications and mortality.