Diabetic nephropathy is a leading cause of morbidity and mortality in hyperglycemic patients. Angiotensin converting enzyme inhibitors and angiotensin-II AT(1) receptor blockers are currently employed to treat patients with diabetic nephropathy; but these agents are considered to be inadequate to control the symptoms of diabetic nephropathy. Recent studies suggest that PPAR ligands are promising agents to prevent the progression of diabetic nephropathy. In the present review, we discussed the novel role of PPARalpha and PPARgamma agonists in the management of diabetic nephropathy.