Objective To study the specific methods of liver function and blood lipid serological indicators in the diagnosis of fatty liver, and evaluate their application value. Methods: 77 patients with fatty liver admitted to our hospital from August 1, 2021 to August 31, 2022 were selected as the study group. All patients were tested for liver function and blood lipid serological indicators. Then 100 patients who received health physical examination at the same time were selected for comparison and set as the control group, indicators has high application value, can improve the positive rate of disease diagnosis, and has positive significance for improving the prognosis of the disease and implementing targeted treatment measures, which is suitable for popularization.