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Background & aim: Pentoxifylline is an immunomodulatory and anti-inflammatory agent which inhibits the production of proinflammatory cytokines. The purpose of this study was to evaluate the effect of pentoxifylline in the treatment of type 1 diabetes in mice and its effect on the expression of peroxisome proliferator- activated receptor gamma (PPARγ). Methods: After induction of diabetes in male C57BL/6 mice, they were treated with Pentoxifylline (100 mg/kg/day) for 21 days. Blood sugar levels were measured on days 0, 7, 14 and 21. Splenocytes were tested for cytokines production by ELISA. Further investigations on immune system changes in spleens were tested by semi-quantitative RT-PCR on PPARγ gene. Statistical data were analyzed using the Student t-test and ANOVA. Results: Treatment with pentoxifylline prevented the level of blood sugar in diabetic rats. Pentoxifylline treatment also significantly inhibited the production of proinflammatory cytokines IL-17 and IFN-γ, while cause increasing the anti-inflammatory cytokine IL- 10 and the expression of PPARγ gene in the spleen compared to the diabetic control group (p< 0.05). Conclusion: Due to STZ induction, Pentoxifylline may have therapeutic effects against autoimmune destruction of pancreatic beta cells on type 1 diabetes in mice