The properties of ATP : diacylglycerol phosphotransferase (ATP + 1,2-diacyl-sn-glycero1-+ phosphatidate + ADP, EC 2.7.1.-) activity found in rat liver microsomal and 105000 x g supernatant fractions were investigated in detail using emulsified and membrane-bound diacylglycerol. The microsomal (specific activity about 0.4 nmol . min-' . mg of protein-') and soluble (0.3 nmol . min-' . mg-') fractions contained about 30 and 50 % of the recovered enzyme activity, respectively.The microsomal activity was more unstable on storage at 0 "C and was more sensitive to fenfluramine [ 1 -(m-trifluoromethylphenyl)-2-ethylaminopropane hydrochloride] than the soluble enzyme. Except for these differences, both enzyme activities had similar properties. They required Mg2+ and deoxycholate for activity and had pH optimum around 7.0. Both enzymes stereospecifically utilized 1,2-diacyl-sn-glyceroI, and did not possess marked selectivity in utilizing emulsified or membrane-bound diacylglycerols of different unsaturation. Other lipid substrates, including monoacylglycerol and ceramide were hardly utilized. The apparent K, values for ATP and diacylglycerol emulsion were 0.16 mM and 0.018 mM, respectively, for microsomal and 0.17 mM and 0.022 mM for soluble enzymes. Both kinase activities were similar when ATP was replaced by GTP ( K , for GTP, 0.63 mM for microsomal and 0.42 mM for soluble enzyme).Membrane-bound diacylglycerol was prepared by treatment of microsomes with CMP or phospholipase C. Although microsomal diacylglycerol kinase was inactivated considerably by these treatments, soluble enzyme could utilize membrane-bound diacylglycerol 3 -5-fold more actively than emulsified substrate. Deoxycholate was required also for maximal utilization of membranebound substrates. The metabolic role of diacylglycerol kinase(s) is discussed.