TNF-␣ potently stimulates basal lipolysis in adipocytes, which may contribute to hyperlipidemia and peripheral insulin resistance in obesity. Recent studies show that adipose triglyceride lipase (ATGL) and hormone-sensitive lipase (HSL) act sequentially in catalyzing the first two steps of adipose lipolysis in response to -adrenergic stimulation. Here, we sought to determine their functional roles in TNF-␣-induced lipolysis. Silencing of ATGL expression in adipocytes almost completely abolished basal and TNF-␣-induced glycerol release. In comparison, the glycerol release under the same conditions was only partially decreased upon reduction in expression of either HSL or the ATGL coactivator CGI-58. Interestingly, overexpression of ATGL restored the lipolytic rates in cells with silenced HSL or CGI-58, indicating a predominant role for ATGL. While expression of ATGL, HSL and CGI-58 remains mostly unaffected, TNF-␣ treatment caused a rapid abrogation of the ATGL inhibitory protein G0S2. TNF-␣ drastically decreased the level of G0S2 mRNA, and the level of G0S2 protein could be maintained by inhibiting proteasomal protein degradation using MG-132. Furthermore, coexpression of G0S2 was able to significantly decrease TNF-␣-stimulated lipolysis mediated by overexpressed ATGL or CGI-58. We propose that the early reduction in G0S2 content is permissive for TNF-␣-induced lipolysis.During extended starvation and exercise, catecholamines stimulate the hydrolysis of triacylglycerol (TAG) 2 stores within the lipid droplets (LDs) in adipocytes. The so-called lipolysis makes available surplus fuel in the form of free fatty acids (FFAs) and glycerol for use by other organs and tissues. During the instances of nutritional overload such as obesity, elevated basal adipose lipolysis contributes to the increase of systemic FFA levels, thereby exacerbating peripheral lipotoxicity and insulin resistance (1-4). Considering the importance of TAG turnover at both physiological and pathological levels, it is not surprising that enzymes governing lipolysis have attracted immense research interest over the years. Among many intracellular lipases identified thus far that possess in vitro capacity to hydrolyze TAG, hormone-sensitive lipase (HSL) and adipose triglyceride lipase (ATGL) are the most characterized functionally (5, 6). A body of evidence has emerged recently, suggesting that ATGL and HSL act sequentially in mediating adipocyte lipolysis in response to -adrenergic stimulation (7-12). In this newly established model, ATGL initiates lipolysis by specifically removing the first FA from TAGs to produce DAG substrates, which are then hydrolyzed by HSL to generate an additional FA and MAG substrates. MAGs are converted into FA and glycerol by MAG lipase in the final step of lipolysis.HSL was discovered nearly half a century ago due to its induction during fasting and by catabolic hormones (13,14). It has broad substrate specificity toward acylglycerols, including TAG, DAG, and MAG, as well as cholesteryl, retinyl, and lipoidal esters....