Hepatic encephalopathy (HE) is a neuropsychiatric disorder associated with portal hypertension. The mechanism of this disorder is still being characterized and the management has relied primarily on lowering the amount of ammonia present in the gastrointestinal tract or reversing liver disease by replacing the diseased liver. It is, however, not established that all the effects of hepatic encephalopathy are reversed by liver transplantation. In this review, we have outlined the mechanisms underlying HE and the pros and cons of reversibility of HE.