Background: Chronic liver disease denotes the disease of the liver which lasts over a period of 6 months or more. The serum ascites albumin gradient (SAAG) is a formula that is used to assist in determining the etiology of ascites. It is also used in detecting ascites of portal hypertension in the adult population. We don’t have any research-based information regarding the correlation between serum ascites albumin gradient and endoscopic parameters of portal hypertension in chronic liver disease. Aim of the study: The aim of this study was to assess the correlation between serum ascites albumin gradient and endoscopic parameters of portal hypertension in chronic liver disease. Methods: This prospective observational study was conducted in the Department of Hepatology, BSMMU, Dhaka, Bangladesh during the period from January 2005 to December 2005. In total 50 patients with cirrhosis with ascites with high SAAG values (>1.1 gm/dl) were included as the study people. The age of the patients was 15 to 70 years. Both males and females were included in the study. All data were entered into a personal computer, thoroughly checked for any possible error, and then processed and analyzed by the SPSS program. The significance of the test was tested by the chi-square test. P-value of <0.05 was taken as statistically significant. Correlation analysis was done by the Pearson correlation test. Result: In this study, there were three SAAG groups. In SAAG group 1.10-1.49gm/dl, 53.33% of patients had mild grades of PNG, and 33.33% of patients had a severe grade of PNG. In the SAAG group, 1.50-1.99 gm/dl, 44.44% of patients had mild grade and 33.33% had a severe grade of PNG and in the SAAG group >2 gm/dl, 42.30% had mild grade and 49.99% had a severe grade of PNG. But there had not been any significant correlation among the groups regarding SAAG values and PHTN grades because the p-value was greater than 0.05. Conclusion: It was shown in this study that, oesophageal varices were present in 49 patients, sensitivity was 98%; portal hypertensive gastropathy in 44 patients, sensitivity 88%, and both oesophageal varices and gastropathy in 43 patients, sensitivity 86%. So high SAAG value can be used as an indicator of the presence of portal hypertensive changes especially oesophageal varices and gastropathy in the upper gastrointestinal tract. A weak positive correlation was found in this study between SAAG values and grades of oesophageal varices (r=0.358, p=0.011) and gastropathy (r-0.139, p--0.33) but no correlation was found between SAAG and gastric varices (p=0.4).