Patel et al. identified adipose triglyceride lipase (ATGL) as the first biosynthetic enzyme for fatty acid esters of hydroxy fatty acids (FAHFAs), a class of bioactive lipids with anti-inflammatory and anti-diabetic properties. ATGL catalyzes FAHFA synthesis via a transacylase reaction using triglyceride as the fatty acid donor and hydroxy fatty acid as the acceptor, expanding its known function beyond triglyceride hydrolysis. This discovery represents a paradigm shift in understanding ATGL biology and opens new avenues for studying FAHFA regulation in metabolic disease.