Fat cell differentiation is a critical aspect of obesity and diabetes. Dietary fatty acids are converted to arachidonic acid, which serves as precursor of prostaglandins (PGs). PGJ2 derivatives function as activating ligands for peroxisome proliferator-activated receptor ␥ (PPAR␥), a nuclear hormone receptor that is central to adipogenic determination. We report here that PGF2␣ blocks adipogenesis through activation of mitogen-activated protein kinase, resulting in inhibitory phosphorylation of PPAR␥. Both mitogen-activated protein kinase activation and PPAR␥ phosphorylation are required for the anti-adipogenic effects of PGF2␣. Thus, PG signals generated at a cell surface receptor regulate the program of gene expression required for adipogenesis by modulating the activity of a nuclear hormone receptor that is directly activated by other PG signals. The balance between PGF2␣ and PGJ2 signaling may thus be central to the development of obesity and diabetes.Altered levels of free fatty acids or their metabolites commonly occur in obesity and diabetes (1, 2), and fatty acid uptake is increased in these disorders (3). Levels of arachidonic acid (AA), 1 which is derived from dietary essential fatty acids, are high relative to other fatty acids in obesity and diabetic states (4), and high levels of AA may exacerbate diabetes by negatively regulating glucose uptake (5). AA serves as precursor for eicosanoid signaling molecules including leukotrienes, hydroxyeicosatetraenoic acids, and prostaglandins (PGs) (6). Many eicosanoids signal via cell surface G-protein-coupled receptors (GPCRs) (7). Others including 8 S hydroxyeicosatetraenoic acids, leukotriene B4, and a number of PGs including PGJ2 and derivatives such as 15-deoxy-⌬12,14-PGJ2 (15d-PGJ2) bind and activate members of the nuclear hormone receptor superfamily (8) called peroxisome proliferator-activated receptors (PPARs) ␣ and ␥ (9 -12).Obesity is due to increased size and number of adipocytes. PPAR␥, the nuclear receptor for PGJ2 derivatives, plays a central role in adipogenesis (12)(13)(14). PPAR␥ is the target of thiazolidinediones, an exciting new class of antidiabetic drugs that function as direct ligands for PPAR␥ and have also been shown to be adipogenic (10,(15)(16)(17). An endogenous PPAR␥ ligand is therefore likely to be an important metabolic regulator.The rate-limiting step in PGJ2 biosynthesis is catalyzed by cyclooxygenase (COX) (18). The actions of different enzymes upon the COX product PGH2 lead to numerous PGs that have different effects on growth, differentiation, and function of many tissues, including PGF2␣ (7). PGF2␣ is known to be synthesized by preadipocytes but does not activate PPAR␥ (9) and by contrast has a potent inhibitory effect upon adipocyte differentiation (19,20). Thus, products of AA metabolism downstream of COX have opposing effects upon adipogenesis. Although the adipogenic effects of PGJ2 derivatives involve direct activation of nuclear PPAR␥, PGF2␣ utilizes a specific GPCR on the cell surface to initiate intracellular signal...