Pancreatectomized dogs developed hypertriglyceridemia. This probably resulted from a lack of insulin rather than a lack of glucagon, as it did not develop either in pancreatectomized dogs maintained on insulin, or in dogs with all but the uncinate process of the pancreas removed. The increase in plasma triglycerides was preceded by a decrease in post-heparin lipolytic activity (PHLA) and an increase in FFA. As the hypertriglyceridemia developed in fasted dogs who had previously been on fat-free diets, the triglyceride fatty acids (TGFA) were nondietary. These endogenous TGFA originated from adipose tissue rather than from de novo synthesis. The composition of the lipoprotein TGFA was identical to that of adipose tissue. Furthermore, nicotinic acid blocked the FFA increase and the development of the hypertriglyceridemia. However, it did not prevent the fall of PHLA. Although their TGFA were entirely nondietary, the lipoproteins in these diabetic dogs resembled chylomicrons in their electrophoretic mobility, size, density, and composition. Surgical, histological and tracer studies suggested that in addition to the liver, the intestinal mucosa makes these lipoproteins. The tracer studies also suggested that circulating FFA might enter the intestinal mucosal cells directly and be esterified.