Peroxisome proliferator-activated receptor-␥ (PPAR␥) agonists, a new class of antidiabetic agents, have been shown to possess antiinflammatory activity. In this study, we investigated the molecular mechanism by which PPAR␥ agonists inhibit proinflammatory cytokine expression in rat glomerular mesangial cells. Both natural and synthetic PPAR␥ agonists potently inhibited RANTES (regulated upon activation, normal T cell expressed and secreted) and monocyte chemoattractant protein-1 expression induced by TNF-␣ in mesangial cells, which was dependent on NF-B signaling. However, PPAR␥ agonists had little effect on TNF-␣-triggered IB␣ phosphorylation and its subsequent degradation, p65 phosphorylation, and nuclear translocation. In the absence of PPAR␥ ligand, TNF-␣ induced a physical interaction between nuclear p65 and PPAR␥, as demonstrated by co-immunoprecipitation. Such an interaction was mediated by the C-terminal region of p65. Activation of PPAR␥ by its agonist prevented PPAR␥⅐p65 complex formation. Chromatin immunoprecipitation assay revealed that TNF-␣ induced p65 binding to the cis-acting B elements in rat RANTES promoter, whereas disruption of PPAR␥⅐p65 by its agonist blocked p65 interaction with its cognate B sites. Knockdown of PPAR␥ via siRNA strategy completely abolished TNF-␣-mediated p65 binding to B sites and negated RANTES induction, suggesting that unliganded PPAR␥ is obligatory for NF-B signaling. Consistently, overexpression of PPAR␥ in the absence of its ligand sensitized mesangial cells to TNF-␣ stimulation. These results uncover a paradoxical action of the unliganded and ligand-activated PPAR␥ in regulating NF-B signaling and demonstrate PPAR␥ ligand as a molecular switch that controls its ability to modulate inflammatory responses in opposite directions.Peroxisome proliferator-activated receptor-␥ (PPAR␥), 2 a ligand-dependent transcription factor that belongs to a subclass of the nuclear hormone receptor superfamily, plays a pivotal role in regulating a wide variety of biological processes such as insulin sensitivity, immune response, adipogenesis, and glucose homeostasis (1-3). PPAR␥ is also the molecular target of thiazolidinediones, which are insulin-sensitizing drugs that are used clinically in the treatment of type 2 diabetes (3-5). Although the mechanism underlying its insulin sensitization action remains to be fully elucidated, PPAR␥ activation by its agonists is known to negatively regulate the stimulus-dependent production of numerous inflammatory mediators that promote an insulin-resistant state (6 -8). Evidence shows that PPAR␥ agonists are able to inhibit the expression and/or biological effects of tumor necrosis factor-␣ (TNF-␣), interleukin-6 (IL-6), monocyte chemoattractant protein-1 (MCP-1), plasminogen activator inhibitor-1, and angiotensinogen (9). These studies underscore that the antiinflammatory potential of PPAR␥ agonists may play a crucial role in mediating their beneficial actions.A large body of evidence demonstrates that PPAR␥ agonists also ameliorate renal fibrotic ...