In agreement with other workers, exposure of isolated rat fat cells to insulin shows a dose dependent increase in cyclic AMP phosphodiesterase (PDE) activity. However, when fat cells are pre-exposed to either guinea pig antiserum against insulin, rabbit antiserum against glutathione-insulin transhydrogenase (GIT), or immunogamma globulin against GIT, each antibody preparation totally or almost totally abolished the insulin-dependent increase in PDE activity. In control experiments, appropriate normal (non-immune) sera, normal gamma globulin, or the GIT-antiserum or the GIT-immunogamma globulin which had been previously neutralized with purified rat liver GIT were found to be completely ineffective in abolishing the insulin-dependent PDE activity of fat cells. These results suggest that the GIT-catalyzed sulfhydryl-disulfide inter-change reaction with insulin might be part of the mechanism by which insulin regulates the intracellular cyclic AMP concentration.