The objectives of this study were to explore the effect of COST (one thousand Da molecular weight chitosan oligosaccharide) on the differentiation of 3T3-L1 preadipocytes and to determine the mechanism of action. 3T3-L1 preadipocytes were used as the target cells, and the induction of the methods for the differentiation of 3T3-L1 preadipocytes was based on classic cocktails. The MTT assay was used to filtrate the concentration of COST. On the 6th day of induced-differentiation, the differentiation of 3T3-L1 cells was detected by Oil Red O staining. The expression of PPARγ and C/EBPα mRNA was determined using real-time fluorescence quantitative PCR (Q-PCR). COST inhibited 3T3-L1 preadipocyte differentiation in a dose-dependent manner and decreased lipid accumulation. At the molecular level, the expression of the transcription factors, PPARγ and C/EBPα, was reduced by COST during adipogenesis. These results indicate that COST effectively inhibited the differentiation of 3T3-L1 preadipocytes. The mechanism is related to the down-regulation expression of PPARγ and C/EBPα.