Hepatic encephalopathy is a brain dysfunction caused by liver insufficiency and/or portosystemic shunting. It manifests as a wide spectrum of neurological or psychiatric abnormalities ranging from subclinical alterations to coma. Ammonia produced in the gut that enters the portal circulation and cannot be cleared by the liver is the main neurotoxin involved. Diagnosis involves clinical assessment using scales like the West Haven criteria and tests such as serum ammonia levels, neuropsychometric tests, and the critical flicker frequency test. Treatment focuses on reducing ammonia levels and symptoms management.