Macrophage-specific transgenic expression of cholesteryl ester hydrolase attenuates hepatic lipid accumulation and also improves glucose tolerance in ob/ob mice. Am J Physiol Endocrinol Metab 302: E1283-E1291, 2012. First published March 6, 2012; doi:10.1152/ajpendo.00511.2011.-Cellular cholesterol homeostasis is increasingly being recognized as an important determinant of the inflammatory status of macrophages, and a decrease in cellular cholesterol levels polarizes macrophages toward an anti-inflammatory or M2 phenotype. Cholesteryl ester hydrolase (CEH) catalyzes the hydrolysis of stored intracellular cholesteryl esters (CE) and thereby enhances free cholesterol efflux and reduces cellular CE content. We have reported earlier reduced atherosclerosis as well as lesion necrosis and improved insulin sensitivity (due to decreased adipose tissue inflammation) in macrophage-specific CEH transgenic (CEHTg) mice in the LDLR Ϫ/Ϫ background. In the present study, we examined the effects of reduced intracellular accumulation of CE in CEHTg macrophages in an established diabetic mouse model, namely the leptin-deficient ob/ob mouse. Macrophage-specific transgenic expression of CEH improved glucose tolerance in ob/obCEHTg mice significantly compared with ob/ob nontransgenic littermates, but with no apparent change in macrophage infiltration into the adipose tissue. However, there was a significant decrease in hepatic lipid accumulation in ob/ob-CEHTg mice. Consistently, decreased [ 14 C]acetate incorporation into total lipids and triglycerides was noted in precision-cut liver slices from ob/ob-CEHTg mice. In the primary hepatocyte-macrophage coculture system, macrophages from CEHTg mice significantly reduced the incorporation of [ 14 C]acetate into triglycerides in hepatocytes, indicating a direct effect of macrophages on hepatocyte triglyceride biosynthesis. Kupffer cells isolated from ob/ob-CEHTg mice were polarized toward an anti-inflammatory M2 (Ly6C lo ) phenotype. Taken together, these studies demonstrate that transgenic overexpression of CEH in macrophages polarizes hepatic macrophages (Kupffer cells) to an anti-inflammatory M2 phenotype that attenuates hepatic lipid synthesis and accumulation. macrophage phenotype and inflammatory status; cell-to-cell interaction; coculture MACROPHAGE CHOLESTEROL HOMEOSTASIS is central to foam cell formation and development of atherosclerotic plaques. Although contribution of macrophage foam cells to the growing lipid core of the plaque is well established, the role of these foam cells in regulating plaque-associated inflammation is increasingly being recognized. The increase in intracellular cholesteryl esters (CE) within macrophages is an important determinant of the inflammatory status of macrophages, and Fazio and Linton (14) proposed a feedback loop where defects in cellular cholesterol balance induced changes in production of inflammatory mediators. Consistently, an increase in cellular cholesterol content by deficiency of cholesterol transporter ATP-binding cassette transpor...