This population-based study was conducted to evaluate the association between newly diagnosed diabetes and the risk of serious liver disease. For that purpose, administrative health databases of Ontario were used to identify 438,069 adults with newly diabetes who were matched 1:5 by age, sex and local health region to individuals without diabetes (n=2,059,708). The data reported a significantly greater risk of serious liver disease in newly diagnosed diabetic subjects compared to those without diabetes, even after adjusting for appropriate confounding variables. In fact, the incidence rate of serious liver disease was 8.19 per 10,000 person-years in persons with diabetes compared to 4.17 in those without. Obesity and arterial hypertension were each individually associated with a modestly increased risk of serious liver disease, but the risk was highest in the presence of diabetes. Thus, these findings suggest that individuals with newly diagnosed type 2 diabetes must be screened for liver-related complications in order to reduce the risk of advanced liver disease.