Thioredoxin-interacting protein (TXNIP) is a key regulator of diabetic -cell apoptosis and dysfunction, and TXNIP inhibition prevents diabetes in mouse models of type 1 and type 2 diabetes. Although we have previously shown that TXNIP is strongly induced by glucose, any regulation by the proinflammatory cytokines tumor necrosis factor ␣ (TNF␣), interleukin-1 (IL-1), and interferon ␥ (IFN␥) has remained largely unexplored. Moreover, even though this three-cytokine mixture is widely used to mimic type 1 diabetes in vitro, the mechanisms involved are not fully understood. Interestingly, we have now found that this cytokine mixture increases -cell TXNIP expression; however, although TNF␣ had no effect, IL-1 surprisingly down-regulated TXNIP transcription, whereas IFN␥ increased TXNIP levels in INS-1 -cells and primary islets. Human TXNIP promoter analyses and chromatin immunoprecipitation studies revealed that the IL-1 effect was mediated by inhibition of carbohydrate response element binding protein activity. In contrast, IFN␥ increased pro-apoptotic TXNIP post-transcriptionally via induction of endoplasmic reticulum stress, activation of inositol-requiring enzyme 1␣ (IRE1␣), and suppression of miR-17, a microRNA that targets and down-regulates TXNIP. In fact, miR-17 knockdown was able to mimic the IFN␥ effects on TXNIP, whereas miR-17 overexpression blunted the cytokine effect. Thus, our results demonstrate for the first time that the proinflammatory cytokines TNF␣, IL-1, and IFN␥ each have distinct and in part opposing effects on -cell TXNIP expression. These findings thereby provide new mechanistic insight into the regulation of TXNIP and -cell biology and reveal novel links between proinflammatory cytokines, carbohydrate response element binding protein-mediated transcription, and microRNA signaling.Pancreatic -cell dysfunction and death play a central role in the development and progression of diabetes and can be caused by multiple stressors including glucotoxicity, gluco-lipotoxicity, and cytokine toxicity (1, 2). Glucotoxicity induced by chronic exposure of -cells to high levels of glucose promotes -cell apoptosis, resulting in a vicious cycle with further worsening of the hyperglycemia (1). Interestingly, we previously discovered thioredoxin-interacting protein (TXNIP), 2 a ubiquitously expressed cellular redox regulator (3), as the top glucoseinduced gene in a human islet gene expression microarray study (4) and found that TXNIP is a crucial mediator of glucotoxicity-induced -cell apoptosis (5). We further demonstrated that -cell TXNIP expression is up-regulated in diabetes and that TXNIP-induced -cell death is mediated by the intrinsic/ mitochondrial death pathway (6). Moreover, we recently revealed that elevated TXNIP levels also contribute to -cell dysfunction by inducing microRNA expression (miR-204), which in turn targets the insulin transcription factor MafA and thereby inhibits insulin production (7). In contrast, TXNIP deficiency led to an increase in functional -cell mass and pro...