The biological functioning of adiponectin (APN) has been well understood for two decades. Numerous clinical and animal studies have paved an understanding of the exposed physiological functions of APN in obesity and its related disorders. APN mediates its action through its receptors to achieve its function. Apart from its contribution to metabolism, APN also defends the cells from cell death and decreases the inflammation in various cell types through receptor-dependent mechanisms and also contributes to the reproductive function. APN communicates between adipose tissue and other organs and hence is a potential therapeutic target for obesity and its related pathogenesis.