Objective: Prophylactic effect of Acarbose for hepatic encephalopathy among diabetic patients with liver cirrhosis. Methodology: It was a randomized controlled, double blind clinical trial conducted in duration of one year at Holy Family hospital, Rawalpindi. Patients with diagnosis of cirrhosis along with DM were enrolled and randomly allocated to the two different treatment groups. Detailed history, physical examination and biochemical measurements were recorded. Patients underwent treatment either with lactulose plus Acarbose and lactulose alone treatment efficacy was recorded at the end of treatment in terms of prevention of hepatic encephalopathy. Results: The mean age was 45±13.7years. Majority were male 130 (61.9%) males. Mean duration of cirrhosis was 3.35±3.3 year. Mean duration of DM was 6.27±3.7 years. On comparison of efficacy between two treatment groups, out of 105in groups, efficacy was found to be in (96.4%) patients among lactulose plus Acarbose group and (80.0%) patients in lactose group respectively with significant P-value (0.014). Conclusion: Acarbose plus lactulose group found to be more effective as prophylactic agent to deal with hepatic encephalopathy than lactulose alone group.