Peroxisome proliferator-activated receptor ␥ (PPAR␥) functions in various biological processes, including macrophage and adipocyte differentiation. Several natural lipid metabolites have been shown to activate PPAR␥. Here, we report that some PPAR␥ ligands, including 15-deoxy-⌬ 12,14 -prostaglandin J 2 , covalently bind to a cysteine residue in the PPAR␥ ligand binding pocket through a Michael addition reaction by an ␣,-unsaturated ketone. Using rhodamine-maleimide as well as mass spectroscopy, we showed that the binding of these ligands is covalent and irreversible. Consistently, mutation at the cysteine residue abolished abilities of these ligands to activate PPAR␥, but not of BRL49653, a non-covalent synthetic agonist, indicating that covalent binding of the ␣,-unsaturated ketone in the natural ligands was required for their transcriptional activities. Screening of lipid metabolites containing the ␣,-unsaturated ketone revealed that several other oxidized metabolites of hydroxyeicosatetraenoic acid, hydroxyeicosadecaenoic acid, and prostaglandins can also function as novel covalent ligands for PPAR␥. We propose that PPAR␥ senses oxidation of fatty acids by recognizing such an ␣,-unsaturated ketone as a common moiety.