Introduction Liver abscesses remain a significant clinical challenge, particularly in tropical regions, despite advances in diagnostic and therapeutic approaches. This study aimed to compare the clinical outcomes of ultrasonography-guided pigtail catheter drainage (PCD) and percutaneous needle aspiration (PNA) in the management of liver abscesses. Methods A prospective observational study was conducted at a tertiary care center from October 2021 to March 2023. A total of 94 patients diagnosed with liver abscess were randomly assigned to two groups, with 47 patients each undergoing PCD and PNA. Baseline characteristics, clinical features, laboratory parameters, imaging findings, and treatment outcomes were recorded and analyzed using SPSS version 26 (IBM Inc., Armonk, NY). Results Right upper quadrant pain was the most frequent symptom, with a significantly higher occurrence in the PNA group (p = 0.041). The overall success rate was significantly higher in the PCD group (87.2%) compared to the PNA group (63.8%, p = 0.008). In the PNA group, single aspiration was sufficient in 18 patients (38.3%), whereas 29 patients (61.7%) required two or more aspirations. Time to achieve a 50% reduction in abscess cavity size was significantly shorter in the PCD group (p < 0.001). No significant differences were observed between the groups in hospital stay, time to clinical improvement, or adverse events. Escherichia coli was the most commonly isolated organism. Conclusion Ultrasonography-guided PCD is more effective than needle aspiration in managing liver abscesses, particularly for larger cavities. PCD enables continuous drainage, faster cavity resolution, and fewer repeat interventions, although PNA remains a simpler and cost-effective alternative in select cases.