G protein-coupled receptors (GPCRs), once thought to be active exclusively at the plasma 2 membrane, have been shown to signal from multiple intracellular membrane compartments, 3 including endosomes and the Golgi. However, the potential occurrence and functional 4 relevance of intracellular signaling for the emerging family of metabolite-sensing GPCRs is 5 largely unknown. Here, we used live-cell imaging, bioluminescence resonance energy transfer 6 (BRET) measurements, and functional readouts to investigate signal compartmentalization of 7 the free fatty acid receptor 4 (FFA4), a prototypical metabolite-sensing GPCR that is activated 8 by medium- and long-chain free fatty acids (FFAs). Unexpectedly, we show that FFA4 largely 9 resides on intracellular membranes that are intimately associated with lipid droplets in 10 adipocytes. Upon lipolysis induction, the released FFAs rapidly bind to and activate this 11 intracellular pool of FFA4, leading to local Gi/o coupling and inhibition of cAMP production in 12 the vicinity of lipid droplets. This provides a spatiotemporally confined negative feedback 13 mechanism allowing individual lipid droplets to rapidly adjust their lipolysis rate. Our results 14 reveal a novel "intracrine" signaling modality by a prototypical metabolite-sensing GPCR and 15 identify a new lipid-droplet-associated signaling hub implicated in the rapid regulation of lipid 16 metabolism, with important implications for adipocyte physiology and pharmacology.