Background: Nonalcoholic fatty liver disease (NAFLD) is a prevalent comorbidity in type 2 diabetes mellitus (T2DM) patients, often progressing to nonalcoholic steatohepatitis (NASH), liver fibrosis, cirrhosis, and hepatocellular carcinoma. Empagliflozin, a sodium-glucose co-transporter-2 (SGLT2) inhibitor, has shown favorable metabolic and cardiorenal outcomes, but its role in hepatic fibrosis remains underexplored. Objective: To evaluate the impact of empagliflozin on liver fibrosis and related biochemical parameters in patients with T2DM and NASH. Methods: A prospective, randomized, open-label study was conducted at BIRDEM General Hospital, Dhaka, from April to October 2022, enrolling 90 adult T2DM patients with magnetic resonance elastography (MRE)-confirmed NASH. Participants were randomized equally into two groups: Group A received empagliflozin (10 mg/day) plus standard antidiabetic medications, while Group B received standard medications alone, for ≥3 months. Outcomes included liver stiffness, liver enzymes, lipid profile, BMI, and glycemic parameters. Statistical analyses were performed using SPSS v24, with p<0.05 considered significant. Results: Both groups were comparable at baseline in terms of demographic and clinical characteristics (p>0.05). After 3 months, Group A showed significant reductions in weight (76.91±6.4 vs. 73.52±6.8 kg, p<0.001), BMI (22.52±4.6 vs. 21.47±4.6 kg/m², p<0.001), FBS, 2HABF, and HbA1c (7.65±1.5 → 7.27±1.47, p=0.012). Liver enzymes (AST, ALT, GGT) and lipid parameters (TC, TG, LDL) decreased significantly in the empagliflozin group, whereas the control group showed smaller or non-significant changes. Liver stiffness (3.40±0.40 → 3.28±0.46 kPa, p=0.031) and fibrosis staging improved significantly in the empagliflozin group but not in the control group. Conclusion: Empagliflozin demonstrated significant improvements in glycemic control, weight, BMI, liver enzymes, lipid profile, and liver stiffness in T2DM patients with NASH. These findings suggest empagliflozin may have therapeutic potential in mitigating hepatic fibrosis. Larger trials with biopsy confirmation and longer follow-up are warranted