OBJECTIVE To assess the correlation of serum alanine aminotransferase and aspartate aminotransferase levels to severity of disease on liver biopsy in patients of chronic hepatitis C. METHODS Descriptive study. METHODS Department of Gastroenterology at Military Hospital, Rawalpindi, from January 2006 to February 2007. METHODS One hundred and seven diagnosed non-cirrhotic chronic hepatitis C adult patients were included. Serum alanine aminotransferase and aspartate aminotransferase levels were determined. Knodell histopathological Index was determined on liver biopsy. The correlation and regression value between serum alanine aminotransferase levels and liver histology and serum aspartate aminotransferase and liver histology in chronic hepatitis C patients was determined using Pearson correlation analysis. RESULTS Patients of chronic hepatitis C had raised serum alanine aminotransferase and levels with the mean baseline level of 93 International units per litre (IU/L) with a range of 13-383 IU/L. Serum aspartate aminotransferase levels were also elevated with mean baseline level of 59.65 IU/L ranging from 18-370 IU/L. On liver biopsy based on Knodell histopathological Index, 47.7% of patients had mild, 39.9% had moderate and 13.1% had severe disease. There was significant association between serum alanine aminotransferase levels severity of the disease on liver biopsy (p < 0.03) with weak positive correlation between the two (r = 0.217). There was also significant association between serum aspartate aminotransferase levels and severity of the disease on liver biopsy (p < 0.001) with weak positive correlation between the two (r = 0.32). CONCLUSIONS The serum alanine aminotransferase and serum aspartate aminotransferase levels do not indicate the severity of the disease on liver biopsy in chronic hepatitis C patients.