The pathway for the synthesis of sn‐1,2‐diacylglycerol stimulated by the action of adipokinetic hormone (AKH) in the insect fat body is unknown. Previous results from this laboratory suggested that the hydrolysis of stored triacylglycerol to sn‐2‐monoacylglycerol followed by the stereospecific acylation of sn‐2‐monoacylglycerol catalyzed by a monoacylglycerol‐acyltransferase (MGAT) could be the major route of AKH‐stimulated sn‐1,2‐diacylglycerol synthesis. Thus, MGAT might represent a key enzyme of this pathway. In this study we characterized the MGAT activity from the Manduca sexta fat body. The activity, which was assayed by acylation of 2‐monoolein using radioactive labeled palmitoyl‐CoA, was found to be primarily a microsomal enzyme. The products of the acylation of 2‐monoolein were 1,2‐diacylglycerol (40–50%), 1,3‐diacylglycerol (20–30%), and triacylglycerol (30–40%). The presence of triacylglycerol as a product revealed the presence of diacylglycerol‐acyltransferase activity in the fat body microsomes. The pH optimum of MGAT activity was 7.0, and the dependence of the activity on the concentration of 2‐monoolein showed saturation kinetics. An endogenous MGAT activity, which represented 20% of the maximal activity observed with added substrate, was detected. Optimal concentrations of palmitoyl‐CoA ranged between 0.10–0.20 mM. The specific activity of MGAT, measured under optimal conditions, was about 0.6 nmol DG formed/min‐mg protein. MGAT activity was greatest with 2‐monoolein, and lower activity was observed when a saturated 2‐monoacylglycerol was employed. The activity observed with sn‐1‐monoacylglycerol was lower than that observed with sn‐2‐monoacylglycerol. AKH did not stimulate MGAT activity, suggesting that either the enzyme is not under hormonal regulation or the monoacylglycerol pathway is not involved in the AKH‐stimulated production of sn‐1,2‐diacylglycerol in the M. sexta fat body. © 1996 Wiley‐Liss, Inc.