It is now over 10 years since the discovery of peroxisome proliferator activated receptor gamma (PPAR gamma) and its unique role in adipogenesis. The subsequent identification of PPAR gamma as the target of insulin sensitizing drugs certified this ligand-regulated transcription factor as an exciting link between adipocyte biology and peripheral insulin resistance. Here, I summarize the great progress that has been made over the past decade in elucidating the biology of PPAR gamma and its role in adipogenesis and glucose metabolism. Prospects for future research leading to new therapies for obesity and diabetes are also discussed.