We report three novel findings that highlight the importance of BMP signaling in the development of NAFLD: treating db/db mice with BMP inhibitors significantly reduces hepatic steatosis; BMP signaling regulates hepatic DGAT2 expression and activity; and a rare single nucleotide polymorphism (SNP) in a BMP type I receptor results in constitutive activation and is associated with NAFLD in humans. This evidence concerns the gene DGAT2 and Hepatic steatosis.