Lipins are evolutionarily conserved proteins found from yeasts to humans. Mammalian and yeast lipin proteins have been shown to control gene expression and to enzymatically convert phosphatidate to diacylglycerol, an essential precursor in triacylglcerol (TAG) and phospholipid synthesis. Loss of lipin 1 in the mouse, but not in humans, leads to lipodystrophy and fatty liver disease. Here we show that the single lipin orthologue of Drosophila melanogaster (dLipin) is essential for normal adipose tissue (fat body) development and TAG storage. dLipin mutants are characterized by reductions in larval fat body mass, whole-animal TAG content, and lipid droplet size. Individual cells of the underdeveloped fat body are characterized by increased size and ultrastructural defects affecting cell nuclei, mitochondria, and autophagosomes. Under starvation conditions, dLipin is transcriptionally upregulated and functions to promote survival. Together, these data show that dLipin is a central player in lipid and energy metabolism, and they establish Drosophila as a genetic model for further studies of conserved functions of the lipin family of metabolic regulators.Neutral lipids, or triacylglycerols (TAG), are principal energy stores of the eukaryotic cell. Metazoans have evolved specialized tissues that store TAG and make free fatty acids or other derivatives of TAG available to other tissues. Besides having storage functions, these specialized adipose tissues participate in the control of energy homeostasis by producing and releasing hormones and other signaling molecules (21, 26).Severe underdevelopment of the adipose tissue is observed in mice carrying the fatty liver dystrophy (fld) mutation. Lack of fat tissue is associated with transient postnatal accumulation of TAG in the liver, defects in the peripheral nervous system, and insulin resistance (15,16,29). Cloning of the fld gene (renamed lipin 1 [22]) revealed that it encodes a member of an evolutionarily old family of proteins found in a wide variety of eukaryotic organisms, including fungi, plants, and protozoans (22). Both yeast and mammalian lipin proteins act as type 1 phosphatidate phosphatases (PAP1), converting phosphatidate to diacylglycerol (DAG), and as transcriptional coregulators (4, 5, 11, 32). The protein domains responsible for these activities are conserved in lipin proteins of other species, indicating that this functional dichotomy is both evolutionarily old and central to lipin function. DAG produced by mammalian lipin 1 serves as a direct biosynthetic precursor of TAG and phospholipids, whereas the transcriptional coregulator function contributes to the control of genes involved in hepatic -oxidation of fatty acids, the tricarboxylic acid (TCA) cycle, and mitochondrial oxidative phosphorylation (5). While these processes appear to be upregulated by lipin 1, enzymes involved in fatty acid and TAG synthesis are downregulated. In yeast, lipin suppresses genes involved in phospholipid synthesis (32). Loss of lipin in yeast leads to the overgrowth of i...