SUMMARY: No change in the rate of 14CO2 production from [U-14C]glucose by the adipose tissue of goats was found in vitro, even in the presence of high concentrations of insulin (1 and 10 m-u./ml.) when glucose was the only substrate in the medium. However, it was demonstrated that in the presence of acetate as little as 10 μu. insulin/ml. exerted a marked effect on glucose oxidation. The most significant effect of insulin was that on the rate of [1-14C]acetate incorporation into fatty acids in the presence of glucose. These findings support the suggestion that the significance of insulin in ruminants is best demonstrated by its effects on the rate of utilization of acetate in the presence of glucose by adipose tissue.