Tricyclic compounds containing a cyclopropyl carboxylic acid or carboxylicacid derivative (e.g. amide) fused to a bicyclic ring, including pharmaceuticallyacceptable salts and prodrugs thereof, are agonists of G-protein coupled receptor40 (GPR40) and are useful as therapeutic compounds, particularly in the treatmentof Type 2 diabetes mellitus, and of conditions that are often associated withthis disease, including obesity and lipid disorders, such as mixed or diabeticdyslipidemia, hyperlipidemia, hypercholesterolemia, and hypertriglyceridemia.