The nuclear hormone receptor , peroxisome proliferator-activated receptor (PPAR)-␥ , originally identified as a key mediator of adipogenesis , is expressed widely and implicated in diverse biological responses. Both natural and synthetic agonists of PPAR-␥ abrogated the stimulation of collagen synthesis and myofibroblast differentiation induced by transforming growth factor (TGF)- in vitro. To characterize the role of PPAR-␥ in the fibrotic process in vivo, the synthetic agonist rosiglitazone was used in a mouse model of scleroderma. Rosiglitazone attenuated bleomycin-induced skin inflammation and dermal fibrosis as well as subcutaneous lipoatrophy and counteracted the up-regulation of collagen gene expression and myofibroblast accumulation in the lesioned skin. Rosiglitazone treatment reduced the induction of the early-immediate transcription factor Egr-1 in situ without also blocking the activation of Smad2/3. In both explanted fibroblasts and skin organ cultures, rosiglitazone prevented the stimulation of collagen gene transcription and cell migration elicited by TGF-. Rosiglitazone-driven adipogenic differentiation of both fibroblasts and preadipocytes was abrogated in the presence of TGF-; this effect was accompanied by the concomitant down-regulation of cellular PPAR-␥ mRNA expression. Collectively, these results indicate that rosiglitazone treatment attenuates inflammation, dermal fibrosis, and subcutaneous lipoatrophy via PPAR-␥ in a mouse model of scleroderma and suggest that pharmacological PPAR-␥ ligands, widely used as insulin sensitizers in the treatment of type-2 diabetes mellitus, may be potential therapies for scleroderma. (Am J Pathol