Background: Nateglinide restores early-phase insulin secretion to feeding and reduces postprandial hyperglycaemia in type 2 diabetes. This study evaluated the effects of nateglinide on dipeptidyl peptidase-IV (DPP-IV) activity and glucose-dependent insulinotropic polypeptide (GIP) degradation. Research design and methods: Blood samples were collected from type 2 diabetic subjects (nZ10, fasting glucose 9.36G1.2 mmol/l) following administration of oral nateglinide (120 mg) 10 min prior to a 75 g oral glucose load in a randomised crossover design. Results: Plasma glucose reached 18.2G1.7 and 16.7G1.7 mmol/l at 90 min in control and placebo groups (P!0.001). These effects were accompanied by prompt 32% inhibition of DPP-IV activity after 10 min (19.9G1.6 nmol/ml per min, P!0.05), reaching a minimum of 1.9G0.1 nmol/ml per min at 120 min (P!0.001) after nateglinide. Insulin and C-peptide levels increased significantly compared with placebo, to peak after 90 min at 637.6G163.9 pmol/l (P!0.05) and 11.8G1.4 mg/l (P!0.01) respectively. DPP-IV-mediated degradation of GIP was significantly less in patients receiving nateglinide compared with placebo. Inhibition of DPP-IV activity corresponded with a time-and concentration-dependent inhibitory effect of nateglinide on DPP-IV-mediated truncation of GIP(1-42) to GIP(3-42) in vitro. Comparison of in vitro inhibition of DPP-IV by nateglinide and vildagliptin revealed IC 50 values of 17.1 and 2.1 mM respectively. Conclusions: Although considerably less potent than specified DPP-IV inhibitors, the possibility that some of the beneficial actions of nateglinide are indirectly mediated through DPP-IV inhibition and increased bioavailability of GIP and other incretins merits consideration.