2Lipid droplets are unique and nearly ubiquitous organelles that store neutral lipids in a 3 hydrophobic core, surrounded by a monolayer of phospholipids. The primary neutral 4 lipids are triacylglycerols and steryl esters. It is not known whether other classes of 5 neutral lipids can form lipid droplets by themselves. Here we show that production of 6 retinyl esters by lecithin:retinol acyl transferase (LRAT) in yeast cells, incapable of 7 producing triacylglycerols and steryl esters, causes the formation of lipid droplets. By 8 electron microscopy, these lipid droplets are morphologically indistinguishable from 9 those in wild-type cells. In silico and in vitro experiments confirmed the propensity of 10 retinyl esters to segregate from membranes and to form lipid droplets. The hydrophobic 11 N-terminus of LRAT displays preferential interactions with retinyl esters in membranes 12 and promotes the formation of large retinyl ester-containing lipid droplets in mammalian 13 cells. Our combined data indicate that the molecular design of LRAT is optimally suited 14 to allow the formation of characteristic large lipid droplets in retinyl ester-storing cells. 15 16 Keywords 17 18 LRAT; vitamin A; retinol; retinyl ester; retinoids; lipid droplets; lipid droplet size; 19 nucleation; lipid:protein interaction; hepatic stellate cells; liver 20 3 61 the autophagic pathway in HSC activation (Hernandez-Gea and Friedman, 2011; Thoen et 62 al., 2011). 63 64 Surprisingly, inhibition of DGAT1 does not affect the dynamics of the preexisting LDs 65 nor does it affect the synthesis of retinyl esters in isolated primary HSCs (Ajat et al., 2017; 66 4 Tuohetahuntila et al., 2016). However, HSCs contain a specialized enzyme called 67 lecithin:retinol acyltransferase (LRAT) that catalyzes a trans-esterification reaction 68 between the sn-1 position of phosphatidylcholine (PC) and all-trans-retinol to form 69all-trans-retinyl ester (Fig. 1A,B) (Golczak et al., 2012; Ruiz and Bok, 2010). As LRAT is 70 the main contributor to retinyl ester storage in the liver (Liu and Gudas, 2005; O'Byrne et 71 al., 2005), we investigated the possibility that LRAT-mediated retinyl ester synthesis 72 drives the generation of the relatively large, retinyl ester-containing LDs in quiescent 73 HSCs. 74 75 5 Results 76 77 LRAT expression generates UV-positive lipid droplets 78 Primary and quiescent HSCs spontaneously transdifferentiate into activated HSCs 79 (myofibroblasts) ex vivo upon isolation and subsequent culture, resulting in LD 80 disappearance. Quiescent and activated HSCs can be identified based on their high 81 expression of desmin, whereas these two HSC populations can be distinguished from 82 each other by an increased alpha smooth muscle actin (α-SMA) expression in activated 83HSCs (Blaner et al., 2009; Friedman, 2008) (Fig. 1C,D). In addition, LRAT expression 84