MicroRNAs (miRNAs) regulate a large proportion of mammalian genes by hybridizing to targeted messenger RNAs (mRNAs) and down-regulating their translation into protein. Although much work has been done in the genome-wide computational prediction of miRNA genes and their target mRNAs, an open question is how to efficiently obtain functional miRNA targets from a large number of candidate miRNA targets predicted by existing computational algorithms. In this paper, we propose a novel Bayesian model and learning algorithm, GenMiR++ (Generative model for miRNA regulation), that accounts for patterns of gene expression using miRNA expression data and a set of candidate miRNA targets. A set of high-confidence functional miRNA targets are then obtained from the data using a Bayesian learning algorithm. Our model scores 467 high-confidence miRNA targets out of 1,770 targets obtained from TargetScanS in mouse at a false detection rate of 2.5%: several confirmed miRNA targets appear in our high-confidence set, such as the interactions between miR-92 and the signal transduction gene MAP2K4, as well as the relationship between miR-16 and BCL2, an anti-apoptotic gene which has been implicated in chronic lymphocytic leukemia. We present results on the robustness of our model showing that our learning algorithm is not sensitive to various perturbations of the data. Our high-confidence targets represent a significant increase in the number of miRNA targets and represent a starting point for a global understanding of gene regulation.