Lipid droplets (LDs) are highly dynamic organelles that play a central role in mammalian energy storage. LDs are also involved in many cellular functions, including protein storage and degradation, and membrane and lipid trafficking (1-4). Each LD contains a hydrophobic neutral lipid core enclosed by a phospholipid monolayer (5). In mammals, the lipid core comprises mainly triacylglycerols (TAGs) and cholesteryl esters. The molecular events underlying the biogenesis of LDs remain to be determined (6). While several models have been proposed, the prevailing view is that LDs originate and bud from the endoplasmic reticulum (ER), followed by expansion and maturation (7). A recent study suggests that the fat storage-inducing transmembrane proteins are required for proper budding of LDs from the ER (8). The growth of LDs is not fully understood, as the size of LDs varies within different tissues and even within the same cell type (9). Recent studies have established the Cide family proteins, Cidec/FSP27 in particular, as key regulators of LD growth/fusion in adipocytes (10, 11). Phospholipids, especially phosphatidylcholine (PC) and phosphatidic acid (PA), also appear to be important regulators of LD growth and proliferation, as a decrease in PC or an increase in PA can both result in the formation of giant or "supersized" LDs (1, 9, 12, 13). LDs can also grow by lipid synthesis in situ, as TAG synthesis enzymes can relocate from the ER to the LD surface to mediate LD growth (14). Despite these important findings, Abstract The expansion of lipid droplets (LDs) and the differentiation of preadipocytes are two important aspects of mammalian lipid storage. In this study, we examined the role of CDP-diacylglycerol (DAG) synthases (CDSs), encoded by CDS1 and CDS2 genes in mammals, in lipid storage. CDS enzymes catalyze the formation of CDP-DAG from phosphatidic acid (PA). Knocking down either CDS1 or CDS2 resulted in the formation of giant or supersized LDs in cultured cells. Moreover, depleting CDS1 almost completely blocked the differentiation of 3T3-L1 preadipocytes, whereas depleting CDS2 had a moderate inhibitory effect on adipocyte differentiation. The levels of many PA species were significantly increased upon knocking down CDS1. In contrast, only a small number of PA species were increased upon depleting CDS2. Importantly, the amount of PA in the endoplasmic reticulum was dramatically increased upon knocking down CDS1 or CDS2. Our results suggest that the changes in PA level and localization may underlie the formation of giant LDs as well as the block in adipogenesis in CDS-deficient cells. We have therefore identified CDS1 and CDS2 as important novel regulators of lipid storage, and these results highlight the crucial role of phospholipids in mammalian lipid storage.-Qi, Y., T.