Hepatitis B virus (HBV) is a major cause of chronic liver disease and an important public health issue. This study was conducted with the objective of evaluating the histological features in patients infected with precore and wild-type HBV infection; compare the histological activity and fibrosis stage and early treatment of HBeAg negative hepatitis. Total thirty six (36) patients were selected. Eighteen (18) were HBe(+ve) and another 18 were HBe(-ve). All had persistent or intermittent elevation of SGPT. Histological examination of liver biopsy specimen was done by Haematoxyn and Eosin (H & E) Stain. Histological activity index (Necroinflaminatory score) was calculated in both groups and compared. Among the patients with wild type of HBV the average HAI was 4.5. While patients with pre-core mutant chronic HBV infection the average HAI was 6.3. The difference between the two groups was not statistically significant. Average periportal necrosis among the patients with wild type was 1.88. While patients with precore mutant chronic HBV infection the average was 2.72. The difference between the two groups was statistically significant (P value0.05). We also found that the progression of disease in terms of liver fibrosis rather than disease activity was more significant in PCM infection than in wild-type HBV infection.