Sphingolipids have become established participants in the pathogenesis of obesity and associated maladies. Sphingosine kinase 1 (SPHK1), which generates sphingosine-1-phosphate, has been shown to increase in liver and adipose of obese humans and mice and to regulate inflammation in hepatocytes and adipose tissue, insulin resistance, and systemic inflammation in mouse models of obesity. Previous studies by us and others have demonstrated that global sphingosine kinase 1 knockout mice are protected from diet-induced obesity, insulin resistance, systemic inflammation, and non-alcoholic fatty liver disease, suggesting SPHK1 may mediate pathological outcomes of obesity. As adipose tissue dysfunction is recognized as a central instigator of obesity-induced metabolic disease, we hypothesized that adipocyte SPHK1 may contribute to HFD-induced pathology. To test this, we depleted Sphk1 from adipocytes in mice (SK1fatKO) and placed them on a high fat diet. In contrast to our initial hypothesis, SK1fatKO mice gained more weight on HFD and showed exacerbated impairment in glucose clearance. Proinflammatory cytokines and adipose tissue neutrophils were similar, as were levels of circulating leptin and adiponectin. However, SPHK1-null adipocytes were hypertrophied and had lower basal lipolytic activity. Interestingly, hepatocyte triacylglycerol accumulation and expression of proinflammatory cytokines and collagen 1a1 were exacerbated in SK1fatKO mice on high fat diet, implicating a specific role for adipocyte SPHK1 in adipocyte function and inter-organ crosstalk that maintains overall metabolic homeostasis in obesity. Thus, SPHK1 serves a previously unidentified essential homeostatic role in adipocytes that protects from obesity-associated pathology. These findings may have implications for pharmacological targeting of the SPHK1/S1P signaling axis.