Forkhead/winged helix box gene, group O-1 (FoxO1) is a member of a family of nuclear transcription factors regulated by insulin-dependent phosphorylation and implicated in the development of the endocrine pancreas. We show here firstly that FoxO1 protein is expressed in both primary mouse islet alpha and beta cells. Examined in clonal alphaTC1-9 cells, insulin caused endogenous FoxO1 to translocate from the nucleus to the cytoplasm. Demonstrating the importance of nuclear exclusion of FoxO1 for the inhibition of preproglucagon gene expression, FoxO1 silencing by RNA interference reduced preproglucagon mRNA levels by >40% in the absence of insulin and abolished the decrease in mRNA levels elicited by the hormone. Electrophoretic mobility shift assay and chromatin immunoprecipitation revealed direct binding of FoxO1 to a forkhead consensus binding site, termed GL3, in the preproglucagon gene promoter region, localized -1798 bp upstream of the transcriptional start site. Deletion or mutation of this site diminished FoxO1 binding and eliminated transcriptional regulation by glucose or insulin. FoxO1 silencing also abolished the acute regulation by insulin, but not glucose, of glucagon secretion, demonstrating the importance of FoxO1 expression in maintaining the alpha-cell phenotype.