As paternally expressed gene 3 (PEG3), which can activate NF-kappa B pathway, plays an important role in the development of renal fibrosis in diabetic nephropathy (DN), the present study aimed to investigate the interaction of PEG3 and the NF-kappa B pathway on renal fibrosis in a DN model. Following the induction of the rat model of DN, a series of experiments were used to measure serum creatinine (Scr), blood urea nitrogen (BUN), urine protein for 24 h (UP24 h), proliferation of renal fibroblasts, positive expression of PEG3, Collagen I and Collagen II protein, the activity of NF-kappa B, collagen fiber expression and the FSP1(+) cell ratio (fibroblast marker, reflecting renal fibrosis). Silencing of PEG3 or inhibition of the NF-kappa B pathway decreased the levels of Scr, BUN, and UP24 h, down-regulated Collagen I protein and up-regulated Collagen II protein. These treatments also downregulated the expression of PEG3, NF-kappa B, Vimentin, alpha-SMA, FN, caspase-3 and FSP1 and the extents of I kappa B alpha, inhibitor of kappa B (I kappa B) kinase beta (IKK beta), and NF-kappa B p65 phosphorylation while that of E-cadherin was up-regulated, and the ratio of FSP1(+) cells was decreased. Taken together, these results showed that silencing of PEG3 inhibited the NF-kappa B pathway, thereby alleviating renal fibrosis in DN, thus presenting PEG3 as a potential therapeutic target in renal fibrosis in DN.