Oxidative folding of nascent proteins in the endoplasmic reticulum (ER), catalysed by one or more members of the protein disulfide isomerase family and the sulfhydryl oxidase ER oxidoreductin 1 (ERO1), is accompanied by generation of hydrogen peroxide (H 2 O 2 ). Because of the high rate of insulin biosynthesis and the low expression of H 2 O 2 -inactivating enzymes in pancreatic b cells, it has been proposed that the luminal H 2 O 2 concentration might be very high. As the role of this H 2 O 2 in ER stress and proinsulin processing is still unsolved, an ER-targeted and luminal-active catalase variant, ER-Catalase N244, was expressed in insulin-secreting INS-1E cells. In these cells, the influence of ER-specific H 2 O 2 removal on cytokine-mediated cytotoxicity and ER stress, insulin gene expression, insulin content and secretion was analysed. The expression of ER-Catalase N244 reduced the toxicity of exogenously added H 2 O 2 significantly with a threefold increase of the EC 50 value for H 2 O 2 . However, the expression of cytokine-induced ER stress genes and viability after incubation with b cell toxic cytokines (IL1b alone or together with TNFaCIFNg) was not affected by ER-Catalase N244. In control and ER-Catalase N244 expressing cells, insulin secretion and proinsulin content was identical, while removal of luminal H 2 O 2 reduced insulin gene expression and insulin content in ER-Catalase N244 expressing cells. These data show that ER-Catalase N244 reduced H 2 O 2 toxicity but did not provide protection against pro-inflammatory cytokine-mediated toxicity and ER stress. Insulin secretion was not affected by decreasing H 2 O 2 in the ER in spite of a reduced insulin transcription and processing.