Plastidic phosphatidic acid phosphatase (PAP) dephosphorylates phosphatidic acid to yield diacylglycerol, which is a precursor for galactolipids, a primary and indispensable component of photosynthetic membranes. Despite its functional importance, the molecular characteristics and phylogenetic origin of plastidic PAP were unknown because no potential homologs have been found. Here, we report the isolation and characterization of plastidic PAPs in Arabidopsis that belong to a distinct lipid phosphate phosphatase (LPP) subfamily with prokaryotic origin. Because no homolog of mammalian LPP was found in cyanobacteria, we sought an LPP ortholog in a more primitive organism, Chlorobium tepidum, and its homologs in cyanobacteria. Arabidopsis had five homologs of cyanobacterial LPP, three of which (LPP␥, LPP⑀1, and LPP⑀2) localized to chloroplasts. Complementation of yeast ⌬dpp1⌬lpp1⌬pah1 by plastidic LPPs rescued the relevant phenotype in vitro and in vivo, suggesting that they function as PAPs. Of the three LPPs, LPP␥ activity best resembled the native activity. The three plastidic LPPs were differentially expressed both in green and nongreen tissues, with LPP␥ expressed the highest in shoots. A knock-out mutant for LPP␥ could not be obtained, although a lpp⑀1lpp⑀2 double knock-out showed no significant changes in lipid composition. However, lpp␥ homozygous mutant was isolated only under ectopic overexpression of LPP␥, suggesting that loss of LPP␥ may cause lethal effect on plant viability. Thus, in Arabidopsis, there are three isoforms of plastidic PAP that belong to a distinct subfamily of LPP, and LPP␥ may be the primary plastidic PAP.