Objective: Although sarcopenic obesity is closely linked to various cardiometabolic disorders, while its influence on non-alcoholic fatty liver disease (NAFLD) or steatohepatitis has not been fully determined in type 2 diabetes. We aimed to investigate whether waist-to-calf circumference ratio (WCR) is associated with NAFLD or hepatic fibrosis in patients with type 2 diabetes. Methods: This observational study performed in 5,806 consecutively enrolled patients with type 2 diabetes. Hepatic steatosis was diagnosed using abdomen ultrasound. Degree of hepatic fibrosis was calculated using serum biomarkerbased models. Insulin resistance was assessed using the short insulin tolerance test (SITT). Results: The prevalence of NAFLD and obesity (BMI≥ 25 g/m², Asian definition) were 44.6% and 38.9%, respectively. The prevalence of NAFLD was higher in subjects with increasing WCR tertiles (the lowest vs. the highest WCR tertile, 32.6% vs. 52% in men, 24.1% vs. 58.0% in women, both Ps < 0.0001). This relationship remained significant after stratification with insulin resistance status by SITT. Increasing WCR tertiles was independently associated with the risk of NAFLD (odds ratios [ORs] = 1.38, 95% confidence interval [CI] = 1.18-1.62, in middle, OR = 1.51, 95%CI = 1.27-1.8, in highest WCR tertile). Furthermore, among NAFLD patients, subjects with the highest WCR tertile were likely to have significant fibrosis compared with the lowest WCR tertile (ORs = 2.27 and 2.15, respectively; both Ps < 0.001). Conclusion: Increased WCR is associated with higher risks of NAFLD and significant hepatic fibrosis independently of insulin resistance in type 2 diabetes patients. This result suggests that WCR may be a useful index to predict hepatic steatosis in type 2 diabetes.