The androgen receptor (AR)-signaling axis plays a key role in the pathogenesis of prostate cancer. The identification of AR targets contributing to prostate tumorigenesis is thus critical for the development of more effective therapies. Herein, we examined whether the AR could regulate classical protein tyrosine phosphatases, a family of enzymes increasingly associated with oncogenic processes. We found that protein tyrosine phosphatase 1B (PTP1B), a well-established regulator of metabolic signaling, was induced after androgenic stimulation of AR-expressing prostate cancer cells. This effect was observed both at the mRNA and protein levels, and translated into increased PTP1B activity. High-resolution location analyses on tiled array covering chromosome 20q revealed the recruitment of the AR to two response elements located within the first intron of the PTP1B gene (PTPN1) and correlated with an increase in RNA polymerase II recruitment to the transcriptional start site of PTPN1. Analysis of copy number alterations revealed that both PTPN1 and AR genes are co-amplified in metastatic tumors, and that PTPN1 amplification is associated with a subset of high-risk primary tumors. At the functional level, PTP1B depletion significantly delayed LNCaP tumor growth in vivo, and impaired androgen-induced cell migration and invasion in vitro. Importantly, androgen-independent cells also required PTP1B for optimal cell migration. Collectively, our results establish the AR as a transcriptional regulator of PTPN1 transcription, and suggest that PTP1B plays a tumor-promoting role in prostate cancer. This has important implications for prostate cancer biology, and supports the pre-clinical testing of PTP1B inhibitors for the treatment of the disease.