Background: Apolipoproteins (apo) C-I and C-III regulate plasma triglyceride metabolism by inhibition of lipoprotein lipase (LPL) activity. Results: ApoC-I or apoC-III prevents LPL from binding to lipid droplets. This results in inhibition of LPL. Conclusion: Inhibition of LPL activity by apoC-I and apoC-III is due to displacement of LPL from lipid droplets. Significance: Our proposed mechanism explains several effects of these apolipoproteins on lipoprotein metabolism.