In the 60% pancreatectomy (Px) rat model of -cell adaptation, normoglycemia is maintained by an initial week of -cell hyperplasia that ceases and is followed by enhanced -cell function. It is unknown how this complex series of events is regulated. We studied isolated islets and pancreas sections from 14-day post-Px versus sham-operated rats and observed a doubling of -cell nuclear peroxisome proliferator-activated receptor (PPAR)-␥ protein, along with a 2-fold increase in nuclear pancreatic duodenal homeobox (Pdx)-1 protein and a 1.4-fold increase in -cell nuclear Nkx6.1 immunostaining. As PPAR-␥ activation is known to both lower proliferation and have prodifferentiation effects in many tissues, we studied PPAR-␥ actions in INS-1 cells. A 3-day incubation with the PPAR-␥ agonist troglitazone reduced proliferation and increased Pdx-1 and Nkx6.1 immunostaining, along with glucokinase and GLUT2. Also, a 75% knockdown of PPAR-␥ using RNA interference lowered the mRNA levels of Pdx-1, glucokinase, GLUT2, and proinsulin II by more than half. Our results show a dual effect of PPAR-␥ in INS-1 cells: to curtail proliferation and promote maturation, the latter via enhanced expression of Pdx-1 and Nkx6.1. Additional studies are needed to determine whether there is a regulatory role for PPAR-␥ signaling in the -cell adaptation following a 60% Px in rats. Diabetes 56:88 -95, 2007