Abstract: PTP1B is a ubiquitously expressed intracellular protein tyrosine phosphatase. Several lines of evidence support an important role for protein tyrosine phosphatase 1B(PTP1B) in metabolism, and specially in type 2 diabetes and obesity. Overexpression of PTP1B protein has been observed in insulin-resistant states associated with obesity. PTP1B is a negative regulator of insulin and leptin signaling, PTP1B inhibitors might be efficacious in the treatment of type 2 diabetes and obesity by increasing insulin and leptin sensitivity.