The protein kinase Akt mediates several metabolic and mitogenic effects of insulin, whereas activation of protein kinase C (PKC) isoforms has been implicated in the inhibition of insulin action. We have previously shown that both PKC and PKC⑀ are activated in skeletal muscle of insulin-resistant high fat-fed rats, and to identify potential substrates for these kinases, we incubated recombinant PKC isoforms with rat muscle fractions in vitro. PKC specifically phosphorylated a 48-kDa protein that was subsequently identified by mass spectrometry as Ndrg2. Ndrg2 is highly related to N-Myc downstream-regulated protein 1, which has been linked to stress responses, cell proliferation, and differentiation, although Ndrg2 itself is not repressed by N-Myc. Ndrg2 contains several potential phosphorylation sites, including three Akt consensus sequences. Ndrg2 phosphorylation was enhanced in [ 32 P]orthophosphate-labeled C2C12 muscle cells co-overexpressing either PKC or Akt. Phosphorylation of Ndrg2 was examined further using a phospho (Ser/Thr) Akt substrate antibody. Insulin increased Ndrg2 phosphorylation in C2C12 cells in a wortmannin-and palmitate-inhibitable manner, whereas rapamycin, PD98059, and bisindoylmaleimide I had no effect, supporting a direct role for Akt. Mutation of Ndrg2 indicated that Thr-348 is the major phosphorylation site detected by the antibody and that Akt stimulates phosphorylation of this site, whereas PKC phosphorylates Ser-332. PKC overexpression, however, diminished the effect of insulin on Thr-348 phosphorylation without reducing Akt activation, suggesting that this is mediated through phosphorylation of Ndrg2 at Ser-332. Our data identify Ndrg2 as a novel insulin-dependent phosphoprotein and suggest that PKC may inhibit insulin action in part by reducing its phosphorylation by Akt.The acute activation of the lipid-dependent Ser/Thr protein kinase PKC 1 has been well characterized. Three groups of PKC have been established: the cPKCs ␣, , and ␥, which are activated by calcium and DAG; the nPKCs, e.g. ␦, ⑀, and , which require DAG; and the aPKCs, and /, which are independent of both calcium and DAG (1). The essential role of specific binding partners such as the RACKS and A-kinase anchoring proteins in the spatial co-ordination of PKC isoforms is also becoming apparent (2). Similarly, a number of substrates, which are directly phosphorylated by PKCs in particular cell types and which mediate PKC effects on cellular regulation, is emerging.Specific PKC isoforms have been implicated in the inhibition of insulin action. Insulin resistance of target tissues such as skeletal muscle is a major contributing factor to the development of type 2 diabetes, and activation of nPKCs, including PKC, have been correlated with insulin resistance in a number of studies, especially in association with increased lipid availability (3, 4). The mechanisms involved, however, including the targets for PKC-mediated phosphorylation, remain unclear. PKCs could interfere at one or more steps in insulin signal transduct...