We previously reported that LCAT deficient mice develop not only low HDL-C but also hypertriglyceridemia, hepatic triglyceride (TG) overproduction and, unexpectedly, improved hepatic insulin sensitivity and reduced hepatic TG content. Here, we examined the mechanistic links underlying this apparent paradox . The Ldlr-/-xLcat-/- mice model and age- and gender-matched Ldlr-/-xLcat+/+ littermates, both in C57Bl/6 background, were employed. Studies of hepatic insulin signal transduction showed an upregulation of hepatic Irs2 mRNA level (5.3-fold, p=0.02), IRS2 protein mass level (1.5-fold, p=0.009) and pIRS2 (1.8-fold. p = 0.02) in the Ldlr-/-xLcat-/- mice. There was a 1.2-fold increase in pAkt (p = 0.03) with a non-significant change in total Akt. We observed a significant shift in its downstream transcription factor FoxO-1 to the cytosolic compartment (2.3-fold increase in cytosolic/nuclear ratio, p=0.04). We also observed a significant 3.1-fold increase in nuclear abundance of FoxA-2 mass (p=0.017) and a 1.5-fold upregulation of its coactivator PGC1 (p=0.002), the coordinated actions of which promotes hepatic TG production and oxidation. Increased hepatic insulin signaling in the Ldlr-/-xLcat-/- mice was associated with an upregulation of the Tcfe3 gene (1.7-fold, p=0.024), a selective downregulation of the Socs-1 gene by 60% (p=0.01) and no change in PTP1B protein mass. These data suggest that LCAT deficiency induces complex alterations in hepatic signal transduction cascades which explain, at least in part, the observed enhanced insulin signaling in association with hepatic TG overproduction and reduced hepatic TG content.