Compositions containing an FKBP 11 peptide (i.e., FKBP11 polypeptide, a variant or a fragment thereof), a fusion protein containing an FKBP11 peptide, or a nucleic acid encoding an FKBP 11 peptide are disclosed.Also disclosed are methods of reducing blood glucose levels, improving glucose tolerance, decreasing hepatic gluconeogenic activity and/or improving insulin sensitivity in a subject, by administering a composition containing an FKBP 11 peptide or a fusion protein containing an FKBP11 peptide. The methods can include administering nucleic acids encoding an FKBP 11 peptide or a fusion protein containing an FKBP11 peptide, to the subject, or cells expressing the nucleic acids.Kits containing an FKBP 11 peptide, are also provided.