We observed the oxygen-rich Large Magellanic Cloud (LMC) supernova remnant N132D (SNR 0525-69.6), using all instruments onboard the Spitzer Space Telescope, IRS, IRAC, and MIPS (Infrared Spectrograph, Infrared Array Camera, Multiband Imaging Photometer for Spitzer). The 5-40 micron IRS spectra toward the southeastern shell of the remnant show a steeply rising continuum with [NeIII] and [OIV] as well as PAH emission. We also present the spectrum of a fast moving ejecta knot, previously detected at optical wavelengths, which is dominated by strong [NeIII] and [OIV] emission lines. We interpret the continuum as thermal emission from swept-up, shock-heated dust grains in the expanding shell of N132D, which is clearly visible in the MIPS 24 micron image. A 15-20 micron emission hump appears superposed on the dust continuum, and we attribute this to PAH C-C-C bending modes. We also detect the well-known 11.3 micron PAH C-H bending feature, and find the integrated strength of the 15-20 micron hump about a factor of seven stronger than the 11.3 micron band in the shell of the remnant. IRAC 3-9 micron images do not show clear evidence of large-scale, shell-like emission from the remnant, partly due to confusion with the ambient ISM material. However, we identified several knots of shocked interstellar gas based on their distinct infrared colors. We discuss the bright infrared continuum and the polycyclic aromatic hydrocarbon features with respect to dust processing in young supernova remnants.

Accepted by ApJ