ABHD17C is a substrate-specific serine hydrolase that acts as a protein depalmitoylase (acyl protein thioesterase), removing S-palmitoyl groups from target proteins to control their membrane association, subcellular distribution, stability, and downstream signaling (PMID:26701913). Its activity is distinct from APT1/APT2: it catalyzes palmitate removal from N-Ras and PSD95 and drives N-Ras re-localization from the plasma membrane to internal membranes, an activity dependent on its catalytic serine (PMID:26701913). Across multiple contexts, ABHD17C-mediated depalmitoylation acts as a regulatory switch—de-S-acylation of the innate immune receptor NOD2 reduces its plasma membrane localization and dampens NF-κB-driven inflammatory cytokine output, marking ABHD17C as a negative regulator of NOD2 signaling (PMID:40054525, PMID:38187608); depalmitoylation of ALOX15B and of BCL6B (at Cys442) triggers their membrane-to-cytoplasm translocation and subsequent ubiquitin-proteasome degradation, the latter via the CUL4/DDB1/DCAF10 ligase complex (PMID:40569151, PMID:42154583). Its own plasma membrane targeting and catalytic activity require palmitoylation of a conserved middle-region cysteine cluster (PMID:41155484), and the enzyme is post-translationally controlled by USP35-dependent deubiquitination that stabilizes it (PMID:37993419) and by ERK1-mediated phosphorylation downstream of mutant KRAS that promotes its activity (PMID:40569151). Through these substrate-directed actions, ABHD17C influences tumor cell proliferation, ferroptosis sensitivity, and immune evasion in several cancer models (PMID:37993419, PMID:40569151, PMID:42154583).