The activities of serum aspartate and alanine aminotransferases were measured in protein energy malnutrition (PEM). These enzyme activities were both increased in PEM and fell as recovery was established. There was a marked reduction in the serum albumin level, and an inverse relationship was observed between the serum albumin levels and the enzyme activities. The relationship is discussed in the light of the hepatocellular damage of PEM. The assay of these enzyme activities along with estimation of serum albumin in PEM will prove very useful in the diagnosis of the liver damage that may occur in PEM before clinical manifestations are established.