We have used a microsomal preparation from the pink portion of the rabbit harderian gland to study the properties of dihydroxyacetone-P acyltransferase. The enzymatic activity in the microsomes is latent and is stimulated approximately 20-fold by the addition of detergent to the assay system. Both deoxycholate and cholate stimulated the enzyme at concentrations considerably below the critical micellar concentration of these detergents. The acyltransferase was not solubilized by treatment with these detergent concentrations. In addition, we have shown that the acyltransferase is sensitive to proteolytic digestion in the presence of deoxycholate concentrations that render the microsomal vesicles permeable to the protease, but is insensitive to the protease treatment in the absence of detergent. Collectively, these data indicate that the active site of dihydroxyacetone-P acyltransferase is exposed to the lumenal surface of the microsomal vesicles. This enzyme is distinct from the glycerol-P acyltransferase in that the dihydroxyacetone-P acyltransferase is sensitive to protease digestion only in the presence of deoxycholate, is not inhibited by sulfhydryl reagents, and is not competitively inhibited by sn-glycerol-3-P.