Nonalcoholic steatohepatitis (NASH) is a leading cause of chronic liver disease worldwide and is characterized by steatosis, inflammation, and fibrosis. The molecular mechanisms underlying NASH development remain obscure. The nuclear receptor small heterodimer partner () plays a complex role in lipid metabolism and inflammation. Here, we sought to determine SHP's role in regulating steatosis and inflammation in NASH. deletion in murine hepatocytes () resulted in massive infiltration of macrophages and CD4 T cells in the liver. mice developed reduced steatosis, but surprisingly increased hepatic inflammation and fibrosis after being fed a high-fat, -cholesterol, and -fructose (HFCF) diet. RNA-Seq analysis revealed that pathways involved in inflammation and fibrosis are significantly activated in the liver of mice fed a chow diet. After having been fed the HFCF diet, WT mice displayed up-regulated peroxisome proliferator-activated receptor γ () signaling in the liver; however, this response was completely abolished in the mice. In contrast, livers of mice had consistent NF-κB activation. To further characterize the role of specifically in the transition of steatosis to NASH, mice were fed the HFCF diet for 4 weeks, followed by deletion. Surprisingly, deletion after steatosis development exacerbated hepatic inflammation and fibrosis without affecting liver steatosis. Together, our results indicate that, depending on NASH stage, hepatic plays an opposing role in steatosis and inflammation. Mechanistically, deletion in hepatocytes activated NF-κB and impaired activation, leading to the dissociation of steatosis, inflammation, and fibrosis in NASH development.