-Decrease of AMPK-related signal transduction and insufficient lipid oxidation contributes to the pathogenesis of obesity and type 2 diabetes. Previously, we identified that diacylglycerol kinase-␦ (DGK␦), an enzyme involved in triglyceride biosynthesis, is reduced in skeletal muscle from type 2 diabetic patients. Here, we tested the hypothesis that DGK␦ plays a role in maintaining appropriate AMPK action in skeletal muscle and energetic aspects of contraction. Voluntary running activity was reduced in DGK␦ ϩ/Ϫ mice, but glycogen content and mitochondrial markers were unaltered, suggesting that DGK␦ deficiency affects skeletal muscle energetics but not mitochondrial protein abundance. We next determined the role of DGK␦ in AMPK-related signal transduction and lipid metabolism in isolated skeletal muscle. AMPK activation and signaling were reduced in DGK␦ ϩ/Ϫ mice, concomitant with impaired lipid oxidation and elevated incorporation of free fatty acids into triglycerides. Strikingly, DGK␦ deficiency impaired work performance, as evident by altered force production and relaxation dynamics in response to repeated contractions. In conclusion, DGK␦ deficiency impairs AMPK signaling and lipid metabolism, thereby highlighting the deleterious role of excessive lipid metabolites in the development of peripheral insulin resistance and type 2 diabetes pathogenesis. DGK␦ deficiency also influences skeletal muscle energetics, which may lead to low physical activity levels in type 2 diabetes. lipid oxidation; skeletal muscle; diacylglycerol kinase; AMPK; contraction DIACYLGLYCEROL (DAG) KINASES (DGK) are a family of lipid kinases that catalyze the phosphorylation and conversion of DAG into phosphatidic acid (PA). Elevated DAG content is linked with the development of insulin resistance in type 2 diabetes (27, 36). Thus, modulating the level of distinct DGK isoforms may influence the level of DAG and consequently insulin sensitivity.DGKs regulate signal transduction via protein kinase C, Ras and Rho family proteins, and phosphatidylinositol 5-kinases (42). Of the ten different isoforms of mammalian DGKs, each may have a different subcellular localization and function (31). Protein abundance of DGK␦ and total DGK activity are reduced in skeletal muscle from type 2 diabetic patients and diabetic rodents and normalized upon correction of hyperglycemia (11). Given that DAG is a precursor for triglyceride biosynthesis, DGKs are potentially involved in regulating fat deposition. Indeed, DGK␦ haploinsufficient (DGK␦ ϩ/Ϫ ) mice develop obesity later in life (11), and knockdown of DGK␦ markedly suppresses triglyceride (TG) synthesis in 3T3-L1 preadipocytes (28). Yet, the mechanism by which DGK␦ affects lipid synthesis and other aspects of lipid metabolism remains unclear.AMP-activated protein kinase (AMPK) is a central regulator of energy metabolism. AMPK is heterotrimeric complex composed of a catalytic ␣-subunit and regulatory -and ␥-subunits. Phosphorylation on the Thr 172 residue of ␣-subunit by liver kinase B (LKB1) (20) or calmo...