Malaria is a mosquito born disease caused by protozoa belonging to family Plasmodium. According to the WHO, involvement of liver in Plasmodium falciparum is not an uncommon feature and presence of jaundice (bilirubin ≥ 3 mg/dl) is one of the signs of malaria. Involvement of liver in malaria is a common feature and may manifest as jaundice, hepatomegaly & elevated liver enzymes like aspartate & alanine transferase. Detection of malaria positive cases and correlation of all malaria positive cases with Liver Function Test (LFT). The study was performed on 100 malaria positive patients. Collection of blood sample was done by venipuncture under aseptic conditions in the EDTA vial for the diagnosis of malaria and in the plain vial to perform liver function test. Malaria was diagnosed by the microscopy of PBS. The LFT was performed using auto analyzer and Erba diagnostic kit, according to manufacturer instructions. Out of 100 malaria positive patients total 70 (70%) patients were found having liver function test deranged while rest 30 (30%) patients were having normal liver function test. 48 (48%) patients showed deranged level of Total bilirubin, 59 (59%) patients showed deranged level of deranged level of SGOT, 57 (57%) patients showed deranged level of SGPT while deranged level of ALP is showed by 34 (34%) patients. Liver dysfunction in malarial infection ranged from mild elevation of liver enzymes and serum bilirubin (≥ 3 mg/dl) to acute hepatitis. It indicates severe illness with high frequency of complications and mortality rates and P. falciparum malaria is more effective to cause hepatic dysfunction that P. vivax malaria.