Two large clinical studies showed that fenofibrate, a commonly used peroxisome proliferatoractivated receptor α (PPARα) agonist, has protective effects against diabetic retinopathy. However, the underlying mechanism has not been clarified. We performed genome-wide analyses of gene expression and PPARα binding sites in vascular endothelial cells treated with the selective PPARα modulator pemafibrate and identified 221 target genes of PPARα including THBD, which encodes thrombomodulin (TM). ChIP-qPCR and luciferase reporter analyses showed that PPARα directly regulated THBD expression via binding to the promoter. In the rat diabetic retina, treatment with pemafibrate inhibited the expression of inflammatory molecules such as VCAM-1 and MCP1, and these effects were attenuated by intravitreal injection of small interfering RNA targeted to THBD. Furthermore, pemafibrate treatment inhibited diabetes-induced vascular leukostasis and leakage through the upregulation of THBD. Our results indicate that PPARα activation inhibits inflammatory and vasopermeable responses in the diabetic retina through the upregulation of TM. Diabetic retinopathy (DR) is the main cause of blindness among working-age adults, and the worldwide prevalence is approximately 35% in patients with diabetes 1. DR is characterized by the combination of increased vessel permeability and progressive vascular occlusion. However, the molecular mechanisms underlying the pathways associated with DR have not been fully elucidated. Several biochemical mechanisms have been proposed to modulate the pathogenesis of DR through effects on cellular metabolism, signaling, and growth factors 2. Implicated pathways include the accumulation of sorbitol and advanced glycation end-products, oxidative stress, protein kinase C activation, and upregulation of the renin-angiotensin system and vascular endothelial growth factor (VEGF). Among them, VEGF strongly promotes angiogenesis, a key mediator of the progression of DR. Inhibition of VEGF (e.g., anti-VEGF therapies) was shown to be effective in the management of DR in numerous studies 3-7. However, some DR patients respond poorly or incompletely to anti-VEGF therapy. Accordingly, there is still substantial unmet medical need in patients with DR. Peroxisome proliferator-activated receptor α (PPARα) is a ligand-activated transcription factor that regulates lipid metabolism 8. PPARα is highly expressed in the liver and is also expressed in the retina 9. Recently, two large, prospective clinical trials have demonstrated that fenofibrate, a canonical synthetic PPARα agonist, has protective effects against DR in type 2 diabetes patients. The Fenofibrate Intervention in Event Lowering in Diabetes (FIELD) Study reported that fenofibrate therapy significantly reduced the cumulative need for laser therapy for DR 10. The Action Control Cardiovascular Risk in Diabetes (ACCORD) Lipid Study of combination simvastatin and fenofibrate demonstrated a greater reduction in the progression of proliferative DR in type 2 diabetes patients compar...