Type 1 protein phosphatase (PP1) is a critical regulator of several cellular processes. In the heart, it mediates restoration of contractility to basal levels by dephosphorylating key phospho-proteins, after beta-adrenergic stimulation. PP1 is a holoenzyme consisting of its catalytic and regulatory subunits. The regulatory proteins anchor the catalytic subunit to desired subcellular locations, define substrate specificity and modulate catalytic activity. At the level of the cardiac sarcoplasmic reticulum (SR), PP1 is regulated by two endogenous inhibitors, Inhibitor-1 (I-1) and Inhibitor-2 (I-2), which modulate its activity according to cellular conditions. In addition, the striated muscle-specific glycogen-targeting subunit, GM/RGL, targets PP1 to the SR vicinity. Regulation of PP1 activity is highly important in maintaining proper cardiac function under physiological conditions. In fact, aberrant Ca handling and depressed contractility, observed in human and experimental heart failure, have been at least partly attributed to increases in the catalytic activity of PP1, mediated by impaired regulation via its endogenous inhibitors. Importantly, increases in the level and activity of I-1 and I-2 in animal models have been successful in ameliorating the cardiac dysfunction and remodeling in heart failure, suggesting that PP1 inhibition may be a plausible therapeutic strategy to alleviate the detrimental manifestations of heart failure.