The activity of hepatic monoacylglycerol acyltransferase (MGAT) (EC 2.3.1.22), a developmentally expressed microsomal enzyme, is inhibited by long-chain fatty acids, and stimulated by its product 1, 2-diacyl-sn-glycerol. Because the quantities of fatty acids and diacylglycerols are likely to vary in membranes during different physiological conditions and could thereby alter MGAT activity, we examined their combined effects on MGAT in Triton X-100/phospholipid mixed micelles. MGAT's product, 1,2-diC18:1-sn-glycerol, which is also normally a cooperative activator of the activity, reversed the 50% inhibition caused by 10 mol % oleic acid. The presence of oleic acid also allowed low concentrations (<10 mol %) of 1, 2-diC18:1-sn-glycerol to stimulate MGAT activity without the lag that is observed in the absence of fatty acid. At 12.6 mol %, 1, 2-monoC18:1-sn-glycerol ether, which alone has no effect on MGAT activity, became an activator in the presence of 10 mol % oleic acid. Kinetic studies revealed that in the presence of 15 mol % oleic acid, 1,2-diC18:1-sn-glycerol ether increased the apparent Vmax by 3. 8-fold while minimally altering the apparent Km for palmitoyl-CoA. Other neutral lipids including tri-C18:1-glycerol, ceramide, and cholesterol oleate did not stimulate MGAT in either the presence or the absence of fatty acid. Assay conditions altered MGAT's apparent relative preferences for potential monoradylglycerol substrates. The presence of phospholipids and of MGAT's 1,2-diacyl-sn-glycerol product increased the enzyme's apparent preference for its 2-monoacyl-sn-glycerol substrate by selectively increasing the apparent Vmax 2.7-fold only when 2-monoC18:1-sn-glycerol was the substrate. Thus, in addition to previously reported regulation of MGAT by phospholipids and intracellular lipid second messengers, these studies lend additional support to the hypothesis that changes in other membrane-associated lipids, such as long-chain fatty acids and diradylglycerols, may also profoundly alter the activity of MGAT.