Phospholipase A2 (PLA2) catalyzes the committed step for eicosanoid biosynthesis. Two cellular PLA2 genes (iPLA2 and cPLA2) have been identified in Spodoptera exigua. PLA2 activity varied among developmental stages and different tissues. There was a positive correlation between PLA2 activities and their expression levels. Interestingly, there was significant inhibition by sPLA2 inhibitor, suggesting a presence of sPLA2 in S. exigua. An entomopathogenic bacterium, Xenorhabdus hominickii, infection suppressed expression of PLA2 genes and its extract inhibited enzyme activities. Oxindole of a bacterial metabolite of X. hominikii inhibited PLA2 activity and expression.