Lipase is an enzyme that plays a crucial role in the digestion and metabolism of dietary fats, also known as lipids. It is produced in various parts of the body, including the pancreas and small intestine, as well as by certain other tissues. Lipase functions by breaking down triglycerides, which are a type of lipid, into smaller molecules called fatty acids and glycerol. This enzymatic action is essential for the absorption and utilization of fats in the body.