Saturated fats are widely seen as undesirable components of a healthy diet, as a result of their illusive association with elevated serum cholesterol. The regulation of serum cholesterol is now better understood and polyunsaturated fatty acids rather than saturated fatty acids are responsible. Palmitic acid received further specious allegations of inciting inflammation when in fact it was found to play an auxiliary role as a precursor to ceramide biosynthesis. Studies of arthritic inflammation in lab animals showed dietary saturated fats are anti-inflammatory, whereas polyunsaturated oils are pro-inflammatory. Inflammation plays a role in numerous metabolic diseases, including insulin resistance, fatty liver disease and metabolic syndrome among others. Fat, as triglycerides in adipose tissue, is an efficient way for living organisms to store energy and reduce toxicity of other macronutrients. However, adipose tissue lipolysis releases fatty acids into the blood to provide many organs with an energy supply and spare glucose for brain tissue. Some metabolic disorders result in elevated nonesterified fatty acids in blood, leading to hepatic lipid accumulation, inflammation and insulin resistance. This paper will attempt to clarify the role of saturated fatty acids, and palmitic acid in particular, with regard to certain adverse health conditions.