Background: A rare coding variant, P522R, in the phosphoplipase C gamme 2 (PLCG2) gene has been identified as protective against late onset Alzheimer’s disease (AD), but the mechanism of protection is unknown. PLCG2 is exclusively expressed in microglia within the central nervous sytem, and altered microglial function has increasingly been implicated in the progression of AD.Methods: Healthy control hiPSCs were CRISPR edited to generate cells heterozygous and homozygous for the PLCG2P522R variant. Microglia derived from these hiPSC’s were used to investigate the impact of PLCg2P522R on disease relevant processes, specifically microglial capacity to take up amyloid beta (Ab) and synapses. Targeted qPCR assessment was conducted to explore expression changes in core AD linked and microglial genes, and nitochondrial function was assessed using an Agilent Seahourse assay.Results: Heterozygous expression of the P522R variant resulted in increased microglial clearance of Ab, while preserving synapses. This was associated with the upregulation of a number of genes, including the anti-inflammatory cytokine Il-10, and the synpase-linked CX3CR1, as well as alterations in mitochondrial function, and increased cellular motility. The protective capacity of PLCg2P522R appeared crucially dependent on (gene) ‘dose’, as cells homozygous for the variant showed reduced synapse preservation, and a differential gene expression profile relative to heterozygous cells. Conclusions: These findings suggest that PLCg2P522R may result in increased surveillance by microglia, as well as priming them towards an anti-inflammatory state, with an increased capacity to respond to increasing energy demands, but highlights the delicate balance of this system, with increasing PLCg2P522R ‘dose’ resulting in reduced beneficial impacts.