possess a catalytic triad consisting of a serine, an aspartate, and a histidine. The published crystal structure of APT1 (PDB ID 1fj2) showed that the protein has indeed a canonical ␣ /  hydrolase fold and presented the protein in its dimeric form ( 2 ). The only other crystal structures known among the lysophospholipase family are carboxylesterase from two different bacteria (e.g., PDB ID 1auo, Fig. 1 includes the corresponding sequence labeled "CARB_H21.01_P_fl uorescens_1AUO") and two uncharacterized proteins (PDB ID 3b5e and 2r8b, SCOP database, Carboxylesterase/thioesterase 1 family) ( 3 ). APT1 is the best-characterized protein of the family and is known to depalmitoylate G ␣ -proteins as well as Ras proteins, and thus is involved in the modulation of the Ras signaling pathway that plays an important role in various types of cancer. The cellular localization of H-Ras and N-Ras is maintained by a palmitoylation/depalmitoylation cycle ( 4 ) that can be disturbed by APT1 inhibitors in vivo ( 5 ), leading to a reversal of the transforming effects induced by active Ras. The close relationship between the LYPLAL1 and APT1 families and the presence of the catalytic triad suggested a cellular function comparable to APT1. However, LYPLAL1 was also proposed to act as a triglyceride lipase in adipose tissue ( 6 ), and several studies indicated a signifi cant relationship between the lyplal1 gene locus and the waist-hip ratio of study participants ( 7, 8 ) as well as fat distribution ( 9 ) and nonalcoholic fatty liver disease ( 10 ). Yet, the biological function and signifi cance of LYPLAL1 remained barely investigated, because no structural or biochemical information was available, so we set out to solve the crystal structure of human LYPLAL1 and characterize its enzymatic properties.Abstract Sequence homology indicates the existence of three human cytosolic acyl protein thioesterases, including APT1 that is known to depalmitoylate H-and N-Ras. One of them is the lysophospholipase-like 1 (LYPLAL1) protein that on the one hand is predicted to be closely related to APT1 but on the other hand might also function as a potential triacylglycerol lipase involved in obesity. However, its role remained unclear. The 1.7 Å crystal structure of LYPLAL1 reveals a fold very similar to APT1, as expected, but features a shape of the active site that precludes binding of long-chain substrates. Biochemical data demonstrate that LYPLAL1 exhibits neither phospholipase nor triacylglycerol lipase activity, but rather accepts short-chain substrates. Furthermore, extensive screening efforts using chemical array technique revealed a fi rst small molecule inhibitor of LYPLAL1. The human acyl protein thioesterases APT1, APT2, and the protein lysophospholipase-like 1 (LYPLAL1) belong, according to their amino acid sequence identities, to two different subclasses of the lysophospholipase family ( Fig. 1 ), which is in turn a subclass of the ␣ /  hydrolases superfamily ( 1 ). A BLAST search with LYPLAL1 fi nds acyl protein thioesterases as the ...