Isocaloric replacement of either the fat or carbohydrate content of the diet by ethanol (36% of the total caloric intake) produced fatty infiltration of the liver in rats. The increase in hepatic triglyceride content was associated with a decrease in both ATP and glycogen contents. Increased activity of mitochondrial Mg(2+)-stimulated adenosine triphosphatase paralleled the increase in the free P(i) content of the liver homogenate. During the regression of the fatty liver, glycogen contents returned to normal within 24h of the removal of ethanol from the diet. Not until the third day after the withdrawal of ethanol had the Mg(2+)-stimulated adenosine triphosphatase activity and free P(i) content of the homogenate returned to normal. A slow regression of the triglyceride content from the liver occurred and by the fifth day both ATP and triglyceride concentrations had returned to the values observed in the rats given the liquid control diet.