Covalent modification of many transcription factors with SUMO-1 is emerging as a key role of trans-activational regulation. Here, we demonstrate that peroxisome proliferator-activated receptor (PPAR) ␥, which is a ligand-activated nuclear receptor, is modified by SUMO-1. Sumoylation of PPAR␥ mainly occurs at a lysine residue within the activation function 1 domain. Furthermore, we show that the PIAS family proteins, PIAS1 and PIASx, function as E3 ligases (ubiquitin-protein isopeptide ligase) for PPAR␥. PPAR␥ interacts directly with PIASx in a ligand-independent manner. Analysis using a PPAR␥ mutant with a disrupted sumoylation site shows that modification of PPAR␥ by SUMO-1 represses its transcriptional activity. Interestingly, PIASx and Ubc9 enhance the transcriptional activity of PPAR␥ independent of PPAR␥ sumoylation. Furthermore, PPAR␥ ligand-induced apoptosis in a human hepatoblastoma cell line, HepG2, is significantly enhanced by ectopic production of the sumoylation-mutant PPAR␥. These results suggest that the PPAR␥-dependent transactivation pathway seems to be modulated by SUMO-1 modification and may serve as a novel target for apoptosis-induction therapy in cancer cells.PPAR␥ 1 is a member of the nuclear hormone receptor superfamily of ligand-activated transcription factors (1) which regulates diverse biological functions including cell differentiation, growth inhibition, lipid metabolism, and apoptosis (2-5). Two isoforms of PPAR␥, PPAR␥1 and PPAR␥2, are generated by alternative promoter usage. PPAR␥2, which contains an additional 30 amino acid residues at the amino terminus compared with PPAR␥1, is predominantly expressed in adipose tissue, whereas PPAR␥1 is widely expressed (6).The role of PPAR␥ in adipogenesis has been extensively studied. Many adipocyte-specific genes, such as adipocytokines, contain PPAR␥-responsible elements in their promoter and/or upstream enhancer regions (7-10). PPAR␥ plays a role as a central transcription factor in cellular differentiation and lipid accumulation during adipogenesis. Recent investigations demonstrate that treatment of a variety of human cancer cell lines with PPAR␥ ligands leads to growth inhibition and apoptosis (2, 11-13). The use of PPAR␥ ligands in the treatment of cancer is a potentially promising nontoxic and selective chemotherapeutic approach, and consequently, increased understanding of the mechanisms of PPAR␥ in tumor suppression is needed.Post-translational modifications regulate the function of many proteins. In the case of PPAR␥, transcriptional activity is reduced by mitogen-activated protein kinase-induced phosphorylation of serine residue 112 (14 -16). Knock-in mice expressing PPAR␥ with a Ser 3 Ala mutation at this residue exhibit preserved insulin sensitivity in the setting of diet-induced obesity by changing fat cell size, generation of adiponectin, and increasing the amount of free fatty acid levels in serum (17).Recently, a number of ubiquitin-like proteins (Ubl) have been identified that are covalently linked to lysine residues in t...