This study reveals that TANGO2, a protein linked to metabolic encephalopathy and arrhythmias, localizes predominantly to mitochondria and regulates lipid homeostasis by facilitating the conversion of lysophosphatidic acid (LPA) to phosphatidic acid (PA). TANGO2-deficient cells show enlarged lipid droplets, elevated ROS, reduced cardiolipin, and exacerbated lipid abnormalities under nutrient starvation, mirroring features seen in patient cells. The findings suggest that TANGO2 functions in acyl-CoA metabolism and that defects in lipid homeostasis are the primary cause of starvation-induced rhabdomyolysis, cardiomyopathy, and cardiac arrhythmias in TANGO2 deficiency.