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Background: Previously, we demonstrated that Spp1−/− mice exhibit a greater susceptibility to alcohol‐induced liver injury than wild‐type (WT) mice. Notably, alcohol triggers the expression of osteopontin (encoded by SPP1) in hepatocytes. However, the specific role of hepatocyte‐derived SPP1 in either mitigating or exacerbating alcohol‐associated liver disease (AALD) has yet to be elucidated. We hypothesized that hepatocyte‐derived SPP1 plays a role in AALD by modulating the regulation of steatosis. Methods: We analyzed hepatic SPP1 expression using four publicly available datasets from patients with alcoholic hepatitis (AH). Additionally, we examined SPP1 expression in the livers of WT mice subjected to either a control or ethanol Lieber‐DeCarli (LDC) diet for 6 weeks. We compared the relationship between SPP1 expression and significantly dysregulated genes in AH with controls using correlation and enrichment analyses. To investigate the specific impact of hepatocyte‐derived SPP1, we generated hepatocyte‐specific Spp1 knock‐out (Spp1ΔHep) mice and subjected them to either a control or ethanol Lieber‐DeCarli diet for 6 weeks. Results: Alcohol induced hepatic SPP1 expression in both humans and mice. Our analysis, focusing on genes correlated with SPP1, revealed an enrichment of fatty acid oxidation (FAO) in three datasets, and peroxisome proliferator‐activated receptor signaling in one dataset. Notably, FAO genes correlating with SPP1 were downregulated in patients with AH. Ethanol‐fed WT mice exhibited higher serum‐free fatty acids (FFAs), adipose tissue lipolysis, and hepatic fatty acid (FA) transporters. In contrast, ethanol‐fed Spp1ΔHep mice displayed lower liver triglycerides, FFAs, and serum alanine transaminase and greater FAO gene expression than WT mice, indicating a protective effect against AALD. Primary hepatocytes from Spp1∆Hep mice exhibited heightened expression of genes encoding proteins involved in FAO. Conclusions: Alcohol induces the expression of SPP1 in hepatocytes, leading to impaired FAO and contributing to the development of AALD. [ABSTRACT FROM AUTHOR]