Hepatic steatosis, defi ned as excessive lipid accumulation in the liver, is observed in >40% of patients with type 2 diabetes ( 1, 2 ). Although a causal relationship between hepatic steatosis and insulin resistance has been diffi cult to defi ne ( 1 ), infl ammation has been implicated as a contributing factor to dysregulated hepatic insulin signaling ( 3 ). As a consequence, hyperinsulinemia-mediated lipogenesis ensues, which along with suppressed FA oxidation contributes to ectopic lipid deposition ( 4 ). Prolonged Abstract PPAR ␦ regulates systemic lipid homeostasis and infl ammation, but its role in hepatic lipid metabolism remains unclear. Here, we examine whether intervening with a selective PPAR ␦ agonist corrects hepatic steatosis induced by a high-fat, cholesterol-containing (HFHC) diet. Ldlr ؊ / ؊ mice were fed a chow or HFHC diet (42% fat, 0.2% cholesterol) for 4 weeks. For an additional 8 weeks, the HFHC group was fed HFHC or HFHC plus GW1516 (3 mg/kg/ day). GW1516-intervention significantly attenuated liver TG accumulation by induction of FA  -oxidation and attenuation of FA synthesis. In primary mouse hepatocytes, GW1516 treatment stimulated AMP-activated protein kinase (AMPK) and acetyl-CoA carboxylase (ACC) phosphorylation in WT hepatocytes, but not AMPK  1 ؊ / ؊ hepatocytes. However, FA oxidation was only partially reduced in AMPK  1 ؊ / ؊ hepatocytes, suggesting an AMPK-independent contribution to the GW1516 effect. Similarly, PPAR ␦ -mediated attenuation of FA synthesis was partially due to AMPK activation, as GW1516 reduced lipogenesis in WT hepatocytes but not AMPK  1 ؊ / ؊ hepatocytes. HFHC-fed animals were hyperinsulinemic and exhibited selective hepatic insulin resistance, which contributed to elevated fasting FA synthesis and hyperglycemia. GW1516 intervention normalized fasting hyperinsulinemia and selective hepatic insulin resistance and attenuated fasting FA synthesis and hyperglycemia. The HFHC diet polarized the liver toward a proinfl ammatory M1 state, which was reversed by GW1516 intervention. Thus, PPAR ␦ agonist treatment inhibits the progression of preestablished hepatic steatosis. -Bojic, L.