Patients with cirrhosis of the liver are susceptible to deterioration of renal function which may be functional or structural. Prerenal acute renal failure which occurs in 68% of these cases is the most common form. It includes a special type of functional renal failure known as hepatorenal syndrome (HRS). Serum creatinine remains the best biomarker for acute renal failure in cirrhosis despite its recognized limitations. Acute tubular necrosis and HRS can be differentiated by using urinary biomarkers such as urinary neutrophil gelatinaseassociated lipocalin (uNGAL). Risk factors for acute renal failure in cirrhosis include bacterial infections, gastrointestinal bleeding, loss of gastrointestinal and renal fluids, paracentesis without albumin, and nephrotoxic agents. The new criteria for staging acute kidney injury (AKI) in cirrhosis have improved patient outcomes by enabling earlier interventions by starting when serum creatinine increases above 0.3 mg/dl in less than 48 hours. The diagnosis of HRS is established by excluding causes of pre-renal azotemia, acute tubular necrosis and volume expansion with albumin. The use of splanchnic vasoconstrictors such as terlipressin together with albumin can reverse up to 40% of cases of SHR. Liver transplantation is the definitive treatment for patients with hepatorenal syndrome.