We have investigated the short-term effects of the saturated free fatty acid (FFA) palmitate on pancreatic ␣-cells. Palmitate (0.5 or 1 mmol/l bound to fatty acidfree albumin) stimulated glucagon secretion from intact mouse islets 1.5-to 2-fold when added in the presence of 1-15 mmol/l glucose. Palmitate remained stimulatory in islets depolarized with 30 mmol/l extracellular K ؉ or exposed to forskolin, but it did not remain stimulatory after treatment with isradipine or triacsin C. The stimulatory action of palmitate on secretion correlated with a 3.5-fold elevation of intracellular free Ca 2؉ when applied in the presence of 15 mmol/l glucose, a 40% stimulation of exocytosis (measured as increases in cell capacitance), and a 25% increase in whole-cell Ca 2؉ current. The latter effect was abolished by isradipine, suggesting that palmitate selectively modulates L-type Ca 2؉ channels. The effect of palmitate on exocytosis was not mediated by palmitoyl-CoA, and intracellular application of this FFA metabolite decreased rather than enhanced Ca 2؉ -induced exocytosis. The stimulatory effects of palmitate on glucagon secretion were paralleled by a ϳ50% inhibition of somatostatin release. We conclude that palmitate increases ␣-cell exocytosis principally by enhanced Ca 2؉ entry via L-type Ca 2؉ channels and, possibly, relief from paracrine inhibition by somatostatin released by neighboring ␦-cells.