Peroxisome proliferators (e.g. clofibric acid) and thyroid hormone play an important role in the metabolism of lipids, These effecters display their action through their own nuclear receptors, peroxisome proliferator-activated receptor (PPAR) and thyroid hormone receptor (TR), PPAR and TR are ligand dependent, DNA binding, trans-acting transcriptional factors belonging to the erbA-related nuclear receptor superfamily, The present study focused on the convergence of the effectors on the peroxisome proliferator response element (PPRE), Transcriptional activation induced by PPAR through a PPRE was significantly suppressed by co-transfection of TR in transient transfection assays, The inhibition, however, was not affected by adding 3,5,3'-triiodo-L-thyronine (T3). Furthermore, the inhibition was not observed in cells cotransfected with retinoic acid receptor or vitamin D3 receptor, The inhibitory action by TR was lost by introducing a mutation in the DNA binding domain of TR, indicating that competition for DNA binding is involved in the molecular basis of this functional interaction, Gel shift assays revealed that TRs, expressed in insect cells, specifically bound to the P-32-labeled PPRE as heterodimers with the retinoid X receptor (RXR), Both PPAR and TR bind to PPRE, although only PPAR mediates transcriptional activation via PPRE, TR RXR heterodimers are potential competitors with PPAR RXR for binding to PPREs, It is concluded that PPAR-mediated gene expression is negatively controlled by TR at the level of PPAR binding to PPRE, We report here the novel action of thyroid hormone receptor in controlling gene expression through PPREs.