Despite being an effective modality of treatment against cancer, chemotherapy is a major factor responsible for the morbidity and mortality caused by cancer. Cyclophosphamide, a widely used chemotherapeutic drug belonging to the Nitrogen Mustard family of alkylating agents, has been documented for many side- effects on the healthy tissues and metabolism of individuals undergoing treatment. In the present study, an effort has been made to investigate the effects of cyclophosphamide administration on hepatic metabolism of albino rats. Male albino rats were divided into two groups (n= 6 in each). Group 1 (Vehicle control) rats were treated with distilled water and group II rats were intraperitoneally administered with single dose of cyclophosphamide at the dose of 200 mg/kg b wt on day 1 of the experiment. Blood was collected from rats of each group on day 7 via cardiac puncture. Serum was separated and analysed for level of liver function markers and lipid profile parameters. Intraperitoneal administration of cyclophosphamide resulted in a significant increase in serum level of bilirubin and liver enzymes-- Serum Glutamic Pyruvic Transaminase (SGPT), Serum Glutamic Oxaloacetic Transaminase (SGOT) and Alkaline Phosphatase (ALP) (P<0.001), while decreased the level of total protein (P<0.01), albumin (P<0.05) and globulin, when compared to vehicle control group rats. A significant increment in serum level of Total Cholesterol (TC), Low Density Lipoprotein (LDL-c), Triglycerides (TG) and Very Low Density Lipoprotein (VLDL- c) along with a significant decrease in High Density Lipoprotein (HDL-c) was observed following cyclophosphamide administration in group II rats, when compared to control group (P<0.001)Cyclophosphamide caused severe biochemical alterations resulting in hepatic toxicity, increased lipid peroxidation and redox imbalances in albino rats. Therefore, a routine monitoring of liver function might be advisable for the individuals undergoing chemotherapy as well as before recommending the chemotherapy session.