coxidation of 3-methyl-substituted fatty acids in rat liver was studied in intact and permeabilized rat hepatocytes, and in homogenates and subcellular fractions. The experiments revealed that the primary end product of a-oxidation is formic acid, which is then converted to CO,. Rates of a-oxidation identical to those observed in intact hepatocytes were obtained in the permeabilized hepatocytes and liver homogenates when ATP, Mg2+ and CoA, and Fez+, 2-oxoglutarate and ascorbate were added, suggesting that aoxidation involves a fatty acid activation reaction and a dioxygenase reaction. Subcellular fractionation by differential and density gradient centrifugation demonstrated that a-oxidation is confined to peroxisomes, which produce formic acid that is converted to CO,, mainly in the cytosol. a-Oxidation in broken cell systems went hand in hand with the formation of a 2-hydroxy-3-methylacyl-CoA ester. Formation of the metabolite was strictly dependent on the presence of the above-mentioned cofactors, was confined to peroxisomes and was inhibited by fenoprofen and propyl gallate, inhibitors of a-oxidation in intact cells, indicating that the 2-hydroxyacyl-CoA ester is a bona fide intermediate of a-oxidation. Selective omission of cofactors from the reaction mixture and analysis of the incubation mixtures for 3-methyl fatty acids, 3-methyl fatty acyl-CoAs and their respective 2-hydroxy derivatives revealed that the activation reaction precedes the dioxygenase (hydroxylase) reaction.Our experiments demonstrate that a-oxidation is a peroxisomal process that consists of at least three reactions : fatty acid activation, hydroxylation and the reaction(s) involved in the release of formic acid.