The fat-specific protein 27 (Fsp27), a protein localized to lipid droplets (LDs), plays an important role in controlling lipid storage and mitochondrial activity in adipocytes. Fsp27-null mice display increased energy expenditure and are resistant to high fat diet-induced obesity and diabetes. However, little is known about how the Fsp27 protein is regulated. Here, we show that Fsp27 stability is controlled by the ubiquitin-dependent proteasomal degradation pathway in adipocytes. The ubiquitination of Fsp27 is regulated by three lysine residues located in the C-terminal region. Substitution of these lysine residues with alanines greatly increased Fsp27 stability and enhanced lipid storage in adipocytes. Furthermore, Fsp27 was stabilized and rapidly accumulated following treatment with -agonists that induce lipolysis and fatty acid re-esterification in adipocytes. More importantly, Fsp27 stabilization was dependent on triacylglycerol synthesis and LD formation, because knockdown of diacylglycerol acyltransferase in adipocytes significantly reduced Fsp27 accumulation in adipocytes. Finally, we observed that increased Fsp27 during -agonist treatment preferentially associated with LDs. Taken together, our data revealed that Fsp27 can be stabilized by free fatty acid availability, triacylglycerol synthesis, and LD formation. The stabilization of Fsp27 when free fatty acids are abundant further enhances lipid storage, providing positive feedback to regulate lipid storage in adipocytes.Cell death-inducing DNA fragmentation factor-45-like effector (Cide) proteins, including Cidea, Cideb, and fat-specific protein 27 (Fsp27, 3 also known as Cidec in humans), are a family of proteins shown to play critical roles in controlling metabolism homeostasis (1). Our previous work demonstrated that mice with a deficiency in Cidea or Cideb have higher energy expenditure and enhanced insulin sensitivity and are resistant to high fat diet-induced obesity and diabetes (2, 3). Fsp27 is enriched in adipocytes, in both white adipose tissue and brown adipose tissue (2, 4). The Fsp27 protein is detected in the lipid droplet (LD)-enriched fraction (5), and its overexpression can promote triacylglycerol (TAG) storage (6, 7). Interestingly, Fsp27 and Cidea mRNAs have also been detected in fatty livers, where an excess amount of lipids accumulate and large LDs form (8 -10). More recently, Fsp27 was demonstrated to be a direct mediator of peroxisome proliferator-activated receptor ␥-dependent hepatic steatosis (10). In accordance with a role for Fsp27 in LD formation, Fsp27 deficiency results in dramatically reduced white adipose tissue deposits and the acquisition of a brown fat-like morphology in these white adipose tissues, which is characterized by the appearance of smaller LDs and increased mitochondrial size and activity (11, 12). Furthermore, both Fsp27-deficient and Fsp27/leptin double-deficient mice display improved insulin sensitivity and lean phenotype (12). Except for one study showing that Cidea is degraded through the ubiquitin-m...