Obesity associates with continuous exposure of liver to high levels of fats, which over time induces abnormal fat accumulation in liver cells and leads to fatty liver and tissue malfunction. Eventually these changes can result in insulin resistance and Type 2 diabetes. The molecular causes that initiate this cycle of negative events remain unclear. I have discovered a novel molecular pathway that serves to adjust liver fat breakdown to fat supply, which maintains energy balance and normal function. I am proposing to examine if disruption of this pathway results in abnormal fat handling that is detrimental to liver health.