In order to study the lipid and fatty acid metabolism in the insulin deficient state, the in vitro incorporation of 1-(14)C-sodium acetate into major lipid fractions and fatty acids of liver slices and whole blood cells was determined. Rats were studied one week, one month and three months after insulin deficiency was induced by administration of streptozotocin.The net incorporation of (14)C into lipid fractions and total fatty acids of liver slices significantly decreased after one week. On the other hand the net incorporation of (14)C into the lipid fractions and total fatty acids of whole blood cells showed a tendency to decrease after three months.The net (14)C incorporation into free cholesterol decreased significantly and that into phospholipids increased significantly in liver slices after one week. The net (14)C incorporation into free cholesterol of whole blood cells decreased significantly on the same day.A significant decrease in the percent incorporation of (14)C into oleic acid was observed in both liver slices and whole blood cells after one month and three months.