Troglitazone is primarily used in the management of type 2 diabetes mellitus. It functions as an insulin sensitizer, helping to improve the body's response to insulin, particularly in muscle, fat, and liver tissues. By enhancing insulin sensitivity, it aids in lowering blood sugar levels, making it a valuable component in diabetes treatment regimens. Additionally, troglitazone has been studied for its potential effects on non-alcoholic fatty liver disease (NAFLD) due to its ability to modulate lipid metabolism and reduce liver fat accumulation. However, its use has been significantly restricted or discontinued in many countries due to concerns over hepatotoxicity, which has led to the development of safer alternatives within the same drug class.