Excessive lipid deposition, liver injury, and insulin resistance are hallmarks in the development and progression of nonalcoholic fatty liver disease (NAFLD). Liver X receptor (LXR) is a transcriptional regulator, and its two cell subtypes, LXRα and LXRβ, play a key role in regulating cholesterol metabolism, inducing anti-inflammation, and reducing insulin resistance. This article reviews the structure and function of LXR and its association with the pathogenesis of NAFLD, in order to provide new ideas and methods for the prevention and treatment of NAFLD.