Insulin-mediated glucose metabolism of peripheral tissue and liver was assessed by euglycemic hyperinsulinemia clamp technique in lipid-infused rats. There was a significant increase in plasma free fatty acids and a significant reduction in glucose infusion rates in the lipid-infused group. The suppressive effect of insulin on hepatic glucose production (HGP) was significantly blunted and the rate of glucose disappearance showed a slight decrease in the lipid-infused rats, suggesting that lipid impaired the abilities of insulin to suppress lipolysis, HGP and insulin-mediated glucose utilization in peripheral tissues.