The primary source of fatty acids processed by ruminant liver is nonesterified fatty acids (NEFA) from blood. Uptake is regulated by concentration of NEFA and blood flow. Blood NEFA concentration increases with negative energy balance. Blood flow increases with energy intake. Uptake and secretion of triacylglycerol between blood and the liver is limited. The reason for limited hepatic secretion of triacylglycerol-rich lipoprotein is unclear but probably involves the secretory process, not synthesis of triacylglycerol or apolipoprotein. Oxidation of fatty acids and ketogenesis are inhibited by malonyl-CoA and propionic acid. The stress of late gestation and early lactation increases NEFA supply to the liver, where they cause deposition of fat. Ketogenesis and oxidation in the liver increase but not sufficiently to prevent an accumulation of fat, which may contribute to decreased feed intake in the peripartum period.