Exposure to the estrogen receptor alpha (ERalpha) ligand diethylstilbesterol (DES) between neonatal days 2 to 12 induces penile adipogenesis and adult infertility in rats. The objective of this study was to investigate the in vivo interaction between DES-activated ERalpha and the proadipogenic transcription factor peroxisome proliferator-activated receptor gamma (PPARgamma). Transcripts for PPARs alpha, beta, and gamma and gamma1a splice variant were detected in Sprague-Dawley normal rat penis with PPARgamma predominating. In addition, PPARgamma1b and PPARgamma2 were newly induced by DES. The PPARgamma transcripts were significantly upregulated with DES and reduced by antiestrogen ICI 182, 780. At the cellular level, PPARgamma protein was detected in urethral transitional epithelium and stromal, endothelial, neuronal, and smooth muscular cells. Treatment with DES activated ERalpha and induced adipocyte differentiation in corpus cavernosum penis. Those adipocytes exhibited strong nuclear PPARgamma expression. These results suggest a biological overlap between PPARgamma and ERalpha and highlight a mechanism for endocrine disruption.