The term `cirrhosis` is used for two centuries to define the end-stage of chronic liver diseases with different etiologies. Clinical manifestations of cirrhosis are related to portal hypertension, hepatic dysfunction progressing to liver failure and development of hepatocellular carcinoma, conditions with unfavorable prognosis. However, recent advances in the diagnosis and treatment of chronic liver diseases have changed the natural history of cirrhosis significantly. According to current concept, liver cirrhosis is heterogeneous, multi-stage condition with variable prognosis. Cirrhosis is considered as a dynamic, biphasic process, based on numerous clinical reports indicating the reversal of advanced fibrosis and cirrhosis after cessation of perpetual injury. This review was focused on current pathology and clinical staging of cirrhosis. The potential mechanism and proves of concept for reversibility of cirrhosis were also discussed.