The present work studied the effect of inhalation of methyl tertiary butyl ether (MTBE) on biochemical parameters and histology of liver of rabbits. Animals were divided into 2 groups. Group 1 served as controls and group 2 were inhaled (MTBE). Animals were sacrificed after 10, 15 and 20 days of treatment. The results showed that exposing animals to MTBE induced significant decrease in RBCs count, hemoglobin, hematocrit percentage and blood platelets. On the other hand, the WBCs count increase. Triglycerides, cholesterol and transaminases (ALT and AST) were increased in the sera of treated rabbits. Histological examination of liver of treated rabbits showed leucocytic infiltrations, congestion of blood vessels, degeneration of hepatocytes and fatty degeneration. It is concluded from these results that that the toxicity of MTBE in rabbits may be attributed to induction of oxidative stress.