Fatty acids are activated by combining with Coenzyme A before being transported into mitochondria for beta-oxidation. Hormones like epinephrine and glucagon promote lipolysis while insulin inhibits it. Fatty acids serve as energy sources and substrates for ketone body synthesis. Triglycerides are hydrolyzed into fatty acids and glycerol, with glycerol entering glycolysis and fatty acids undergoing beta-oxidation to produce acetyl-CoA.