In rat pancreatic islets chronically exposed to high glucose or high free fatty acid (FFA) levels, glucoseinduced insulin release and mitochondrial glucose oxidation are impaired. These abnormalities are associated with high basal ATP levels but a decreased glucoseinduced ATP production (⌬ of increment over baseline 0.7 ؎ 0.5 or 0.5 ؎ 0.3 pmol/islet in islets exposed to glucose or FFA vs. 12.0 ؎ 0.6 in control islets, n ؍ 3; P < 0.01) and, as a consequence, with an altered ATP/ADP ratio. To investigate further the mechanism of the impaired ATP formation, we measured in rat pancreatic islets glucose-stimulated pyruvate dehydrogenase (PDH) activity, a key enzyme for pyruvate metabolism and for the subsequent glucose oxidation through the Krebs cycle, and also the uncoupling protein-2 (UCP-2) content by Western blot. In islets exposed to high glucose or FFA, glucose-stimulated PDH activity was impaired and UCP-2 was overexpressed. Because UCP-2 expression is modulated by a peroxisome proliferatoractivated receptor (PPAR)-dependent pathway, we measured PPAR-␥ contents by Western blot and the effects of a PPAR-␥ antagonist. PPAR-␥ levels were overexpressed in islets cultured with high FFA levels but unaffected in islets exposed to high glucose. In islets exposed to high FFA concentration, a PPAR-␥ antagonist was able to prevent UCP-2 overexpression and to restore insulin secretion and the ATP/ADP ratio. These data indicate that in rat pancreatic islets chronically exposed to high glucose or FFA, glucose-induced impairment of insulin secretion is associated with (and might be due to) altered mitochondrial function, which results in impaired glucose oxidation, overexpression of the UCP-2 protein, and a consequent decrease of ATP production. This alteration in FFA cultured islets is mediated by the PPAR-␥ pathway. Diabetes 51: 2749 -2756, 2002 P atients with type 2 diabetes are characterized by a progressive decline of insulin secretion that becomes more severe with the increasing duration of the disease (1-4). In these patients, the mechanisms that cause the progressive -cell failure are currently under investigation: the altered insulin secretory pattern depends, at least in part, on the negative influence of chronic high glucose (5-8) and/or high free fatty acid (FFA) (9 -12) plasma concentrations (gluco-or lipotoxicity). These metabolites are believed to affect pancreatic -cell function by chronic -cell stimulation and consequent "desensitization" to glucose. However, the molecular mechanisms of glucose desensitization induced by hyperglycemia or hypernefemia are still unclear (13,14).Rat pancreatic islets that are chronically exposed to high glucose or FFAs have an impaired glucose oxidation (15). Because glucose oxidation generates ATP and the rise of ATP and ATP/ADP ratio plays a central role in glucose-induced insulin release by causing K ϩ -ATP channel closure, membrane depolarization, increased calcium influx, and insulin granule exocytosis, we first measured ATP and ADP levels in islets that were chronic...