Proteins that fail to fold or assemble in the endoplasmic reticulum (ER) are destroyed by cytoplasmic proteasomes through a process known as ER-associated degradation. Substrates of this pathway are initially sequestered within the ER lumen and must therefore be dislocated across the ER membrane to be degraded. It has been proposed that generation of bicellar structures during lipid droplet formation may provide an "escape hatch" through which misfolded proteins, toxins, and viruses can exit the ER. We have directly tested this hypothesis by exploiting yeast strains defective in lipid droplet formation. Our data demonstrate that lipid droplet formation is dispensable for the dislocation of a plant toxin and the degradation of both soluble and integral membrane glycoproteins.Secreted and transmembrane proteins are co-translationally inserted into the endoplasmic reticulum (ER), 3 where they are folded, modified, and assembled into higher order complexes prior to transport to their final destinations. Proteins failing to reach their native conformation are recognized and delivered to the cytosolic ubiquitin-proteasome system for degradation by a process termed ER-associated degradation (ERAD). How substrates overcome the spatial segregation imposed by the ER membrane and are finally dislocated from the ER into the cytosol is a fundamental question that remains unresolved (1, 2). Polytopic ER-resident membrane proteins including Sec61p (3), Derlins (4, 5), and Hrd1p (6) have been suggested, largely on the basis of their polytopic membrane-spanning topology, their proximity to other membrane-associated components of the ERAD system, and the ability to co-precipitate or be crosslinked to putative dislocation intermediates, to be structural elements of a transmembrane channel that mediates substrate dislocation. However, the structure and composition of such a channel remain obscure, and its existence remains controversial (1, 2, 7). The ability of the ER dislocation apparatus to accommodate large bulky substrates such as glycoproteins with intact N-glycans (8), ligand-stabilized folded proteins (9), as well as toxins (10) and even intact viruses (11), which appear to hijack this pathway to enter the cytosol, disfavors the existence of such a pore. In response to these concerns, Ploegh (7) has proposed a provocative ER exit model in which substrate dislocation is coupled to the formation of lipid droplets (LDs), which are ER-derived organelles required for the storage and mobilization of neutral lipids. Relatively little is known about how LDs form, and Ploegh (7) hypothesized that generation of bicellar structures during LD formation could result in transient pores, or "escape hatches," in the ER membrane, allowing the escape of luminal ERAD substrates and/or the direct extraction of polytopic substrates associated with the LD membrane. This LD-based ER exit model remains untested.Yeast strains lacking the acyltransferases (Dga1p, Lro1p, Are1p, and Are2p) necessary for the synthesis of triacylglycerides and steryl es...