Cyclophosphamide is widely used in the treatment of many vasculitides. Hepatotoxicity associated with such therapy is uncommon but possible. Herein we describe a well-substantiated case of cyclophosphamide-induced hepatotoxicity in a patient with Wegener's granulomatosis. Physicians should be aware of this potentially serious reaction when cyclophosphamide therapy is initiated. Baseline liver function tests and periodic assessment are recommended during treatment with cyclophosphamide.