Myelination requires a massive increase in glial cell membrane synthesis. Here we demonstrate that the acute phase of myelin lipid synthesis is regulated by SREBP cleavage activation protein (SCAP), an activator of sterol regulatory element-binding proteins (SREBPs). Deletion of SCAP in Schwann cells led to a loss of SREBP-mediated gene expression, congenital hypomyelination and abnormal gait. Interestingly, aging SCAP mutant mice showed partial regain of function; they exhibited improved gait and produced small amounts of myelin indicating a slow SCAP-independent uptake of external lipids. Accordingly, extracellular lipoproteins promoted myelination by SCAP mutant Schwann cells. However, SCAP mutant myelin never reached normal thickness and had biophysical abnormalities concordant with abnormal lipid composition. These data demonstrate that SCAP mediated regulation of glial lipogenesis is key to the proper synthesis of myelin membrane. The described defects in SCAP mutant myelination provide new insights into the pathogenesis, and open new avenues for treatment strategies, of peripheral neuropathies associated with lipid metabolic disorders.