Thiazolidinedione (TZD) compounds are widely used as oral hypoglycemic agents. Herein, we provide evidence showing that troglitazone, one of the TZD compounds, is able to prevent glomerular dysfunction in diabetic rats through a novel mechanism independent of its insulin-sensitizing action. We examined the effect of troglitazone on functional and biochemical parameters of glomeruli in streptozotocin-induced diabetic rats. Troglitazone was able to prevent not only diabetic glomerular hyperfiltration and albuminuria, but an increase in mRNA expression of extracellular matrix proteins and transforming growth factor-1 in glomeruli of diabetic rats, without changing blood glucose levels. Biochemically, an increase in diacylglycerol (DAG) contents and the activation of the protein kinase C (PKC)-extracellular signal-regulated kinase (ERK) pathway in glomeruli of diabetic rats were abrogated by troglitazone. The activation of DAG-PKC-ERK pathways in vitro in mesangial cells cultured under high glucose conditions was also inhibited by troglitazone. Troglitazone enhanced the activities of DAG kinase, which could metabolize DAG to phosphatidic acid, in both glomeruli of diabetic rats and mesangial cells cultured under high glucose conditions. Surprisingly, pioglitazone, another TZD compound without ␣-tocopherol moiety in its structure, also prevented the activation of the DAG-PKC pathway and activated DAG kinase in mesangial cells cultured under high glucose conditions. These results may identify the TZDs as possible new therapeutic agents for diabetic nephropathy that prevent glomerular dysfunction through the inhibition of the DAG-PKC-ERK pathway. Diabetes 49:1022-1032, 2000 T hiazolidinediones (TZDs), novel insulin-sensitizing agents, have been shown to attenuate hyperinsulinemia and hyperglycemia in insulin-resistant diabetic animals and human subjects with type 2 diabetes (1,2). These agents are currently in clinical trials and have been widely used as oral antidiabetic agents in subjects with type 2 diabetes in the U.S. and other countries. Although it is generally believed that TZDs exert insulin-sensitizing activity through the activation of peroxisome proliferator-activated receptor (PPAR)-␥, a member of the PPAR nuclear receptor superfamily (3), the exact mechanism of their action remains to be clarified (4-6). Besides its insulinsensitizing activity, troglitazone, one of the TZD compounds, was found to inhibit high glucose-induced proliferation and migration of vascular smooth muscle cells by inhibiting the activation of protein kinase C (PKC) (7); to inhibit platelet aggregation (8); to reduce balloon injury-induced intimal hyperplasia in rat artery (9); and to suppress both insulin-and angiotensin II-induced increase of DNA synthesis by inhibiting the activation of extracellular signal-regulated kinase (ERK) (10,11). Troglitazone was also shown to ameliorate albuminuria and peripheral neuropathy in streptozotocin (STZ)-induced diabetic rats, regardless of blood glucose levels (12,13). These results indicate ...