Straight chain fatty acid ␣-oxidation increases during differentiation of 3T3-L1 adipocytes, leading to a marked accumulation of odd chain length fatty acyl moieties. Potential roles of this pathway in adipocyte differentiation and lipogenesis are unknown. Mammalian fatty acid 2-hydroxylase (FA2H) was recently identified and suggested to catalyze the initial step of straight chain fatty acid ␣-oxidation. Accordingly, we examined whether FA2H modulates adipocyte differentiation and lipogenesis in mature adipocytes. FA2H level markedly increases during differentiation of 3T3-L1 adipocytes, and small interfering RNAs against FA2H inhibit the differentiation process. In mature adipocytes, depletion of FA2H inhibits basal and insulin-stimulated glucose uptake and lipogenesis, which are partially rescued by the enzymatic product of FA2H, 2-hydroxy palmitic acid. Expression of fatty-acid synthase and SCD1 was decreased in FA2H-depleted cells, and levels of GLUT4 and insulin receptor proteins were reduced. 2-Hydroxy fatty acids are enriched in cellular sphingolipids, which are components of membrane rafts. Accelerated diffusional mobility of raft-associated lipids was shown to enhance degradation of GLUT4 and insulin receptor in adipocytes. Consistent with this, depletion of FA2H appeared to increase raft lipid mobility as it significantly accelerated the rates of fluorescence recovery after photobleaching measurements of lipid rafts labeled with Alexa 488-conjugated cholera toxin subunit B. Moreover, the enhanced recovery rates were partially reversed by treatment with 2-hydroxy palmitic acid. In conclusion, our findings document the novel role of FA2H in adipocyte lipogenesis possibly by modulation of raft fluidity and level of GLUT4.In addition to mitochondrial -oxidation, fatty acids (FA) 2 can also be oxidized in peroxisomes, where they can undergo -as well as ␣-oxidation. Peroxisomal ␣-oxidation produces fatty acyl moieties with one less carbon (odd chain length) without generating acetyl-CoA (1). It is well known that peroxisomal ␣-oxidation is important for catabolism of branched-chain FA and also for very long chain FA (2). Its contribution to catabolism of other long chain FA is not known, so its role in whole cell energy homeostasis remains unclear. There is evidence for up-regulation of FA ␣-oxidation during the preadipocyte to adipocyte transition as cells begin accumulating lipids. Using electrospray ionization-mass spectrometry and gas chromatography-coupled mass spectrometry, we and others demonstrated during differentiation of 3T3-L1 cells a marked increase in activity of peroxisomal FA ␣-oxidation, which was reflected in accumulation of odd chain length acyl moieties in major lipid species (3, 4). The underlying mechanisms for this change and the functions of the ␣-oxidation pathway in adipocyte differentiation and lipid metabolism in mature adipocytes have not been explored.Although straight chain FA ␣-oxidation was first reported in 1964 (5), a detailed understanding of the enzymatic pathway is sti...