β-Klotho (β-Kl), a transmembrane protein expressed in the liver, pancreas, adipose tissues, and brain, is essential for feedback suppression of hepatic bile acid synthesis. Because bile acid is a key regulator of lipid and energy metabolism, we hypothesized potential and tissue-specific roles of β-Kl in regulating plasma lipid levels and body weight. By crossing β-kl-/- mice with newly developed hepatocyte-specific β-kl transgenic (Tg) mice, we generated mice expressing β-klsolely in hepatocytes (β-kl-/-/Tg). Gene expression, metabolomic, and in vivoflux analyses consistently revealed that plasma level of cholesterol, which is over-excreted into feces as bile acids in β-kl-/-, is maintained in β-kl-/- mice by enhanced de novo cholesterogenesis. No compensatory increase in lipogenesis was observed, despite markedly decreased plasma triglyceride. Along with enhanced bile acid synthesis, these lipid dysregulations in β-kl-/- were completely reversed in β-kl-/-/Tg mice. In contrast, reduced body weight and resistance to diet-induced obesity in β-kl-/- mice were not reversed by hepatocyte-specific restoration of β-Kl expression. We conclude that β-Kl in hepatocytes is necessary and sufficient for lipid homeostasis, whereas nonhepatic β-Kl regulates energy metabolism. We further demonstrate that in a condition with excessive cholesterol disposal, a robust compensatory mechanism maintains cholesterol levels but not triglyceride levels in mice.