Decompensated liver disease was investigated in 94 unselected Filipino patients sequentially hospitalized with Schistosoma japonicum infection. Liver damage was objectively scored from 3 (none) to a maximum of 10 (severe damage with encephalopathy) using a modified Pugh-Child grading system. Liver parenchymal dysfunction occurred in 52% of patients and was severe in 21% (hepatic encephalopathy or markedly prolonged prothrombin time). Severity scores were higher in patients with previous gastrointestinal bleeding (7.3 vs. 5.1; P less than .001) and were inversely correlated with admission hematocrit (r = -.60; P less than .001). Ultrastructural analysis revealed abnormalities of Disse's space--the site of blood-hepatocyte exchange. Praziquantel achieved 100% parasitologic cure, but none of the 27 patients followed up for a mean of 9.6 months after receiving it had resolution of liver damage. Liver parenchymal dysfunction is a common problem in hospitalized schistosomiasis patients and persists after parasitologic cure.