Dermal white adipose tissue (dWAT) has found little appreciation in the past as a distinct entity from the better recognized subcutaneous white adipose tissue (sWAT). However, recent work has established dWAT as an important contributor to a multitude of processes, including immune response, wound healing and scarring, hair follicle growth and thermoregulation. Unique metabolic contributions are attributed to dWAT as well, at least in part due to thermic insulation properties and its response to cold exposure. Dermal adipocytes can also undergo adipocyte-myofibroblast transition (AMT), a process that is suspected to play an important role in a number of pathophysiological processes within the skin. Here, we discuss emerging concepts regarding dWAT physiology and its significance to a variety of cellular processes.