The liver is one of the most complex and vital organs. Its primary function is detoxification of absorbed substances from the digestive system before their distribution into the systemic circulatory system. This study was conducted to demonstrate prenatal development of the liver in albino rats considering its structure and maturation. The study included light microscopic examination by using heamatoxylin and eosin (H&E) stain for general histological examination, PAS stain for glycogen and immunohistochemistry for analysis of alpha smooth muscle Actins (ASMA) expression and the cell-specific expression of alpha fetoprotein (AFP). Morphometry was performed using H&E sections and the resulting parameters were analyzed statistically using t- test. The liver primordium develops as a diverticulum in the ventral wall of foregut. This diverticulum is separated from the developing heart by the septum transversum (ST). Cells from the hepatic diverticulum migrate towards the underlying mesenchyme of ST and form hepatic cords. These cords differentiate into the parenchyma of the liver (hepatocytes) and form the lining of the biliary ducts. Hematopoietic cells, Kupffer cells and connective tissue cells are derived from the mesoderm of the ST.