This study compared hepatic fat fraction measured using MRS and gradient echo MRI at 3T. Fitting algorithms using a single fat peak and multiple fat peaks were compared with MRS data at TE=20ms and also T2-corrected MRS. Individual differences between T2 values of water and fat calculated from MRS were also used to estimate the difference between R2*-water and R2*-fat and included in the multi peak fitting per subject. The results showed a good correlation between multi-peak and MRS data (R2 = 0.9), but applying T2-correction to MRS increased the scatter (R2 = 0.67) and systematic error (gradient = 1.34). Using the new R2* corrected fitting algorithm resulted in similar scatter (R2 = 0.66) but improved systematic error (gradient = 1.09). The results from this study indicate the dual-R2* fitting is important at 3T and further developments should be made to optimize these methods.