Differentiation of adipogenic precursor cells into mature adipocytes is a complex process. Adipocyte differentiation is characterized by the expression of several adipocyte-specific genes, which occurs in an ordered fashion, and is orchestrated by a set of interacting transcription factors. The most prominent transcription factors involved in this process are the γ form of peroxisome proliferator activated receptors (PPAR) and the various members of the CAAT enhancer binding proteins (α β, and γ). In addition to PPARγ and the C/EBPs, several other transcription factors, including ADD-1 (SRE-BP), HMGI-C, are involved in regulating the differentiation process. Altered activity and/or expression of these transcription factors, will change the expression of target genes in the differentiating cells, ultimately resulting in the differentiated adipocyte phenotype. Modulation of these transcription factors by either pharmacological or dietary manipulations might influence adipocyte differentiation and prove beneficial in the prevention and treatment of obesity