Peroxisome proliferator-activated receptors (PPARs) ␣ and ␥ are key regulators of lipid homeostasis and are activated by a structurally diverse group of compounds including fatty acids, eicosanoids, and hypolipidemic drugs such as fibrates and thiazolidinediones. While thiazolidinediones and 15-deoxy-⌬ 12,14 -prostaglandin J 2 have been shown to bind to PPAR␥, it has remained unclear whether other activators mediate their effects through direct interactions with the PPARs or via indirect mechanisms. Here, we describe a novel fibrate, designated GW2331, that is a highaffinity ligand for both PPAR␣ and PPAR␥. Using GW2331 as a radioligand in competition binding assays, we show that certain mono-and polyunsaturated fatty acids bind directly to PPAR␣ and PPAR␥ at physiological concentrations, and that the eicosanoids 8(S)-hydroxyeicosatetraenoic acid and 15-deoxy-⌬ 12,14 -prostaglandin J 2 can function as subtypeselective ligands for PPAR␣ and PPAR␥, respectively. These data provide evidence that PPARs serve as physiological sensors of lipid levels and suggest a molecular mechanism whereby dietary fatty acids can modulate lipid homeostasis.