She used the talks to encourage the Supreme Council of the Armed Forces (Scaf) to take a step back from what it views as its role in government and return to 'a purely national security role'.
Mrs Clinton held talks with Mohammed Morsi, Egypt's newly-elected president, on Saturday.
He is currently involved in a power struggle with Scaf, which took control of the country after mass demonstrations led to Hosni Mubarak being ousted as president in February last year.
Scaf dissolved the Egyptian parliament, which was dominated by Mr Morsi's supporters from the Muslim Brotherhood's Freedom and Justice Party, before the new president was sworn in last month.
Mr Morsi issued a decree to reinstate parliament last week, but the Supreme Constitutional Court backed Scaf and Field Marshal Tantawi.
Mrs Clinton told the Egyptian president that 'democracy is hard', but encouraged him to continue trying to reach a compromise with the military.
However, she also said it was time for a 'full transition to civilian rule'.
Her visit was not universally popular within Egypt and a demonstration was held outside the hotel she was staying at in Cairo on Saturday evening.
It was organised by Coptic Christian activists, who chanted anti-US and anti-Islamist slogans.?
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