Nonalcoholic fatty liver disease (NAFLD) is a progressive metabolic disorder with limited therapeutic options. This study investigates the hepatoprotective potential of two novel Oligopeptides, LLRLTDL (Bu1) and GYALPCDCL (Bu2), against hepatic steatosis in oleic acid (OA) induced HepG2 cells and in diet-induced obese mice. In vitro, Bu1 and Bu2 suppressed fatty acid synthesis and ameliorated lipid accumulation by downregulating the expression of key lipogenic transcription factors, including PPAR-γ, SREBP-1c, C/EBP-α, and FAS. Peptide treatment also enhanced phosphorylation of AMPK and HSL, indicating suppression of lipogenesis and promoting fatty acid oxidation. In vivo, Bu1 and Bu2 administration attenuated body weight gain, relative liver weight, hepatic lipid accumulation, and improved hepatic lipid profiles, including TG, FFA, free glycerol release, HDL, and LDL, independent of food intake. Liver histology further confirmed reversal of hepatic steatosis following peptide administration. Of note, these ameliorative effects of Bu1 and Bu2 were further substantiated at the molecular level, as evidenced by Western blot analysis. Moreover, two peptides exerted anti-inflammatory effects by reducing pro-inflammatory cytokine levels and alleviating hepatocellular injury, indicated by lower serum AST and ALT levels. Collectively, these findings suggest the potential of Bu1 and Bu2 as bioactive peptide-based interventions for NAFLD, offering a strong rationale for their further investigation in the treatment of metabolic liver disease.