Alzheimer's disease (AD) is a devastating neurodegenerative disease for which there are no highly effective therapies. A novel therapeutic approach to the treatment of AD is the use of agonists of the nuclear receptor, peroxisome proliferators-activated receptor gamma (PPAR gamma). PPAR gamma is a ligand activated transcription factor whose best described Toles are to regulate lipid metabolism and inflammation. Agonists of PPAR gamma have been shown to ameliorate AD-related pathology in animal models of AD and improve cognition. A number of potential mechanisms have been advanced to account for these effects. PPAR gamma agonists act as insulin sensitizers, facilitating insulin action. In addition, PPAR gamma agonists have been shown to inhibit inflammatory gene expression, alter A beta homeostasis and exhibit neuroprotective effects. Importantly, recent clinical trials of FDA approved PPAR gamma agonists have been shown to improve cognition and memory in AD patients. Thus, PPAR gamma agonists represent a new and potentially efficacious treatment of AD.