Protein tyrosine phosphatase 1B (PTP1B) is a key regulator of metabolism and cell growth by its ability to dephosphorylate tyrosine kinase receptors and modulate the intensity of their signaling cascades. Because liver regeneration involves tyrosine phosphorylation-mediated signaling, we investigated the role of PTP1B in this process by performing partial hepatectomy in wild-type (PTP1B ؉/؉ ) and PTP1B-deficient (PTP1B ؊/؊ ) mice. The expression of PCNA and cyclins D1 and E (cell proliferation markers) was enhanced in PTP1B ؊/؊ regenerating livers, in parallel with 5=-bromo-2=-deoxyuridine incorporation. Phosphorylation of JNK1/2 and STAT3, early triggers of hepatic regeneration in response to TNF-␣ and IL-6, was accelerated in PTP1B ؊/؊ mice compared with PTP1B ؉/؉ mice. These phosphorylations were increased in PTP1B ؊/؊ hepatocytes or by silencing PTP1B in wild-type cells and decreased further after the addition of recombinant PTP1B. Enhanced EGFand HGF receptor-mediated signaling was observed in regenerating livers lacking PTP1B and in EGF-or HGF-stimulated PTP1B ؊/؊ hepatocytes. Moreover, PTP1B ؊/؊ mice displayed a more rapid increase in intrahepatic lipid accumulation than PTP1B ؉/؉ control mice. Late responses to partial hepatectomy revealed additional divergences because stress-mediated signaling was attenuated at 24 to 96 hours in PTP1B ؊/؊ mice compared with PTP1B ؉/؉ mice. Finally, PTP1B deficiency also improves hepatic regeneration in mice fed a high-fat diet. These results suggest that pharmacological inhibition of PTP1B would improve liver regeneration in patients with acute or chronic liver injury.