Activation of peroxisome proliferator-activated receptor-␥ (PPAR␥) signaling after stroke may reduce brain injury, but this effect will depend on the levels of receptor and cofactors. Here, we showed that the direct effect of PPAR␥ signaling to protect neurons from ischemic injury requires a novel cofactor LMO4, because this effect was lost in LMO4-null cortical neurons. PPAR␥ agonist also failed to reduce cerebral infarction after transient focal ischemia in CaMKII␣Cre/LMO4loxP mice with LMO4 ablated in neurons of the forebrain. Expressing LMO4 in LMO4-null cortical neurons rescued the PPAR␥-protective effect. PPAR␥ signaling activates the promoter of the antioxidant gene SOD2 and this process requires LMO4. Addition of a superoxide dismutase mimetic MnTBAP [manganese(III)tetrakis(4-benzoic acid)porphyrin] bypassed the deficiency in PPAR␥ signaling and was able to directly rescue LMO4-null cortical neurons from ischemic injury. Like LMO4, PPAR␥ and PGC1␣ (PPAR␥ coactivator 1␣) levels in neurons are elevated by hypoxic stress, and absence of LMO4 impairs their upregulation. Coimmunoprecipitation and mammalian two-hybrid assays revealed that LMO4 interacts in a ligand-dependent manner with PPAR␥. LMO4 augments PPAR␥-dependent gene activation, in part, by promoting RXR␣ (retinoid X receptor-␣) binding to PPAR␥ and by increasing PPAR␥ binding to its target DNA sequence. Together, our results identify LMO4 as an essential hypoxia-inducible cofactor required for PPAR␥ signaling in neurons. Thus, upregulation of LMO4 expression after stroke is likely to be an important determinant of neuron survival.