Insulin rapidly stimulates tyrosine phosphorylation of a 185-kDa protein in most cell types. This protein, insulin receptor substrate 1 (IRS-1), has been implicated as the first postreceptor step in insulin signal transmission based on studies with insulin receptor mutants. In cell culture and in vitro, phosphorylated IRS-1 associates with the lipid-metabolizing enzyme phosphatidylinositol 3-kinase (PI 3-kinase), resulting in activation of this enzyme. Thus, the insulin receptor, IRS-1 and PI-3 kinase represent three of the earliest steps in insulin action at the cellular level. We have recently demonstrated that insulin is capable of stimulating PI 3-kinase activity in liver and muscle in vivo in animals and that IRS-1 phosphorylation may play a significant role in the association/activation with PI 3-kinase in vivo.