cChronic inflammation in obese adipose tissue is linked to endoplasmic reticulum (ER) stress and systemic insulin resistance. Targeted deletion of the murine fatty acid binding protein (FABP4/aP2) uncouples obesity from inflammation although the mechanism underlying this finding has remained enigmatic. Here, we show that inhibition or deletion of FABP4/aP2 in macrophages results in increased intracellular free fatty acids (FFAs) and elevated expression of uncoupling protein 2 (UCP2) without concomitant increases in UCP1 or UCP3. Silencing of UCP2 mRNA in FABP4/aP2-deficient macrophages negated the protective effect of FABP loss and increased ER stress in response to palmitate or lipopolysaccharide (LPS). Pharmacologic inhibition of FABP4/aP2 with the FABP inhibitor HTS01037 also upregulated UCP2 and reduced expression of BiP, CHOP, and XBP-1s. Expression of native FABP4/aP2 (but not the non-fatty acid binding mutant R126Q) into FABP4/aP2 null cells reduced UCP2 expression, suggesting that the FABP-FFA equilibrium controls UCP2 expression. FABP4/aP2-deficient macrophages are resistant to LPS-induced mitochondrial dysfunction and exhibit decreased mitochondrial protein carbonylation and UCP2-dependent reduction in intracellular reactive oxygen species. These data demonstrate that FABP4/aP2 directly regulates intracellular FFA levels and indirectly controls macrophage inflammation and ER stress by regulating the expression of UCP2.O besity-linked metabolic disorders, including insulin resistance, fatty liver disease, and coronary arterial disease, share the common signature of chronic inflammation and endoplasmic reticulum (ER) stress (1, 2). Macrophage and T cell infiltration and activation in adipose tissue play a key role in affecting adipokine synthesis and secretion, thereby regulating systemic insulin resistance (3). Inflammatory cytokines increase oxidative stress and decrease the protein-folding efficiency of the ER, initiating a counterregulatory unfolded protein response (UPR) (4) involving pancreatic ER kinase (PERK), activating transcription factor-6 (ATF6), and inositol-requiring enzyme 1 (IRE1). Such concomitant activation leads to the downstream activation of response pathways and the induction of inflammatory signaling networks via c-Jun N-terminal kinase (JNK) and/or NF-B (nuclear factor kappa B) (1).Lipid metabolism in macrophages has been shown to play an important role in triggering inflammation and ER stress (5, 6) and has led to the identification of critical proteins that regulate the obesity-metabolic disease axis. For example, genetic ablation of the fatty acid binding protein (FABP4, also known as aP2) in macrophages alone is sufficient to protect mice from development of atherosclerosis and dyslipidemia (7). FABP4/aP2 is a cytoplasmic fatty acid (FA) carrier protein that mediates intracellular fatty acid trafficking, and a number of hypotheses have been proposed to explain why the loss of FABP4/aP2 results in metabolic improvement (6). Moreover, small molecules that target FABP4/aP2 have ...