Grade 2 fatty liver with diabetes and hypertension does increase the risk of progression to liver inflammation (NASH) and fibrosis over time, and alcohol can accelerate this process even if the quantity seems moderate. However, the reassuring points in your case are: • Your LFTs were normal recently • You do not have symptoms suggestive of advanced liver disease • The duration mentioned is relatively limited (around 12 months) A bottle of beer daily for one year may contribute to worsening fatty liver and inflammation, especially in the presence of diabetes and metabolic syndrome, but it does not necessarily mean permanent liver damage has already occurred. Many patients at this stage can still achieve significant reversal with strict lifestyle correction. Yes — if there is no significant fibrosis yet, stopping alcohol completely now can substantially improve and even reverse fatty liver changes over time. The liver has a remarkable ability to recover in early stages. Important steps now: • Completely avoid alcohol going forward • Tight diabetes and BP control • Weight reduction if overweight • Regular exercise (150–300 mins/week) • Avoid sugary drinks, processed food, excess carbohydrates • Continue medications only under physician supervision I would strongly advise: • FibroScan to assess fibrosis status • Repeat LFT, lipid profile, HbA1c • Ultrasound abdomen if not done recently Normal LFTs do not always rule out fibrosis, so fibrosis assessment is important in fatty liver patients with diabetes. If fibrosis is absent or minimal, there is a very good chance of recovery and preventing long-term complications by maintaining complete abstinence and metabolic control from now onward.