ABHD5, also named as NCIE2 and CGI-58, belongs to the peptidase S33 family. ABHD4/ABHD5 subfamily. It is a Lysophosphatidic acid acyltransferase which functions in phosphatidic acid biosynthesis. ABHD5 may regulate the cellular storage of triacylglycerol through activation of the phospholipase PNPLA2. It is involved in keratinocyte differentiation. ABHD5 is an evolutionarily conserved protein that acts as a potent activator of Atgl. Abhd5 is expressed in several tissues that lack Plin , raising the possibility that this co-activator might interact with additional PAT proteins. Abhd5 and Mldp are highly colocalized on individual lipid droplets.(PMID:19064991) Defects in ABHD5 are the cause of Chanarin-Dorfman syndrome (CDS).