The nuclear receptor peroxisome proliferator‐activated receptor‐γ (PPARγ) helps to translate ‘what you eat’ into ‘what you are’ because it allows dietary fatty acids (PPARγ ligands) to modulate gene transcription. Treatments for diabetes include PPARγ activators, as they sensitize the body to insulin. Our understanding of PPARγ function has recently been enhanced by a flurry of human and mouse genetic studies, and the characterization of new PPARγ ligands. This insight has led us to propose that modulating PPARγ activity, rather than activating it, might be the most effective strategy for treating metabolic disorders, as this will improve glucose homeostasis while preventing adipogenesis.