Peroxisome proliferator-activated receptor (PPAR) g is critical for alveolar macrophage (AM) function. Chronic alcohol abuse causes AM phagocytic dysfunction and susceptibility to respiratory infections by stimulating nicotinamide adenine dinucleotide oxidases (Nox), transforming growth factor-b 1 , and oxidative stress in the AM. Because PPARg inhibits Nox expression, we hypothesized that alcohol reduces PPARg, stimulating AM dysfunction. AMs were examined from: (1) patients with alcoholism or control patients; (2) a mouse model of chronic ethanol consumption; (3) PPARg knockout mice; or (4) MH-S cells exposed to ethanol in vitro. Alcohol reduced AM PPARg levels and increased Nox1, -2, and -4, transforming growth factor-b 1 , oxidative stress, and phagocytic dysfunction. Genetic loss of PPARg recapitulated, whereas stimulating PPARg activity attenuated alcohol-mediated alterations in gene expression and phagocytic function, supporting the importance of PPARg in alcohol-induced AM derangements. Similarly, PPARg activation in vivo reduced alcohol-mediated impairments in lung bacterial clearance. Alcohol increased levels of microRNA-130a/-301a, which bind to the PPARg 39 untranslated region to reduce PPARg expression. MicroRNA-130a/-301a inhibition attenuated alcohol-mediated PPARg reductions and derangements in AM gene expression and function. Alcohol-induced Toll-like receptor 4 endocytosis was reversed by PPARg activation. These findings demonstrate that targeting PPARg provides a novel therapeutic approach for mitigating alcohol-induced AM derangements and susceptibility to lung infection.