Hepatorenal syndrome is a type of kidney failure seen in patients with cirrhosis or acute liver failure. It occurs due to severe vasodilation in the splanchnic circulation leading to renal hypoperfusion. There are two types - type 1 is characterized by a rapid decline in kidney function over less than 2 weeks, while type 2 is less severe but still associated with refractory ascites. Treatment involves volume expansion with albumin and vasoconstrictors like terlipressin or midodrine to increase renal blood flow. Dialysis or liver transplantation may be needed for patients who do not respond to medical therapy. The prognosis is poor without treatment or liver recovery/transplantation.