All eukaryotes store excess lipids in organelles known as lipid droplets (LDs), which play central roles in lipid metabolism. Understanding LD biogenesis and metabolism is critical for understanding the pathophysiology of lipid metabolic disorders like obesity and atherosclerosis. LDs are composed of a core of neutral lipids surrounded by a monolayer of phospholipids that often contains coat proteins. Nascent LDs bud from the endoplasmic reticulum (ER) but the mechanism is not known. In this commentary we discuss our recent finding that a conserved family of proteins called fat storage-inducing transmembrane (FIT) proteins is necessary for LDs budding from the ER. In cells lacking FIT proteins, LDs remain in the ER membrane. C. elegans has a single FIT protein (FITM-2), which we found is essential; almost all homozygous fitm-2 animals die as larvae and those that survive to adulthood give rise to embryos that die as L1 and L2 larvae. Homozygous fitm-2 animals have a number of abnormalities including a significant decrease in intestinal LDs and dramatic defects in muscle development. Understanding how FIT proteins mediate LD biogenesis and what roles they play in lipid metabolism and development are fascinating challenges for the future. Lipid droplets (LDs) are the major storage organelle for fat in most organisms. 1,2 LDs play a key role in lipid homeostasis. However, recent findings suggest that LDs have many other functions; they play roles in protein degradation 3,4 and the endoplasmic reticulum (ER) stress response, 5 they act as sites for assembly of infectious virions, 6 are involved in membrane trafficking and signal transduction, and act as a temporary storehouse of proteins. 1,7,8 Understanding LD homeostasis, biogenesis and catabolism is critical for understanding the pathophysiology of lipid storage disorders like obesity, lipodystrophy (abnormal distribution of fat), type2-diabetes, insulin resistance, atherosclerosis and its associated diseases. 9,10 These metabolic diseases have a wide range of crippling symptoms, the treatment options of which are few and not very effective.We are still just beginning to understand the biogenesis of LDs. Before discussing what is known about this process, it is important to understand how LDs differ from other organelles. Most organelles are surrounded by a membrane bilayer that separates the lumen of the organelle from the cytoplasm. In contrast LDs have a phospholipid monolayer that surrounds a core of neutral lipids. [11][12][13][14] LDs are surrounded by coat proteins; perilipins (PLIN) in mammals, and oleosins in plants, that regulate the access of lipid lipases to the neutral lipid core (for review see [15][16][17][18] ). However, yeast and C. elegans lack LD coat proteins, 19,20 suggesting that coat proteins are not necessary for LD formation or maintenance. Indeed, emulsions of neutral lipids and phospholipids without proteins form artificial LDs in vitro.How do LDs form in cells? A number of models have been proposed but the simplest is one that ...