The relationship between hepatitis C virus (HCV) infection and hepatic steatosis is complex and involves a number of interrelated mechanisms that regulate viral replication, insulin resistance (IR), and lipid metabolism in the liver. The situation becomes even more complex in HCV-positive patients undergoing liver transplantation, largely because of the effects of immunosuppression. In this issue of Liver Transplantation, Brandman et al. 1 from the University of California San Francisco report an investigation of a number of the components of this complex and multifactorial relationship.In the nontransplant setting, HCV infection is recognized as an important risk factor for IR and hepatic steatosis. The prevalence of type 2 diabetes mellitus, an important result of severe IR, is significantly greater in patients with chronic HCV infection (20%-50%) than in those with other chronic liver diseases (approximately 10%). 2 Likewise, steatosis is seen in 40% to 86% of liver biopsy samples from patients with chronic HCV infection, 3 and this rate is considerably higher than the frequency observed in patients with other chronic liver diseases or in the general population. The development of hepatic steatosis can be viewed as a mechanism that promotes viral replication: the HCV core protein is targeted to lipid droplets, which act as intracellular storage organelles and are also required for virus assembly. 4 Two main pathways for HCV-induced hepatic steatosis have been proposed: metabolic and viral. The first involves a number of HCV-mediated mechanisms that result in IR and is seen in individuals infected with a non-3 genotype (particularly genotype 1). 3,5 The factors involved in the pathogenesis of HCVinduced IR are complex and include (1) direct effects on insulin signaling pathways, (2) altered glucose uptake by hepatocytes, and (3) the production of proinflammatory cytokines such as tumor necrosis factor a and reactive oxygen species (both appear to promote IR through mechanisms that are incompletely understood). 2,6,7 HCV infections also appear to promote truncal obesity, which is an important mechanism in the development of hepatic steatosis and inflammation. 8 In this setting, the severity of steatosis correlates with risk factors for metabolic syndrome rather than viral RNA levels. In contrast, in genotype 3-infected individuals, there is a direct correlation between the HCV RNA levels and the severity of steatosis, which diminishes in patients who achieve a sustained virological response to antiviral therapy; this suggests a direct effect of the virus on lipid metabolism. 3,5 The pathogenesis of viral-induced steatosis likely involves a number of effects of HCV on lipid metabolism in hepatocytes; these include increased lipid production by the up-regulation of Abbreviations: HCV, hepatitis C virus; IR, insulin resistance.