Herbivore attack elicits defense responses in host plants by a complex chain of events that starts with the introduction of herbivore-specific elicitors into the wounds at the feeding or oviposition site, their recognition by the plant, and activation of several signaling cascades that trigger defense responses that finally increase resistance. Oxylipin signaling plays a central role in the activation of these herbivore-induced responses. Wounding activates some but not all of these defense responses, but herbivore attack frequently amplifies the oxylipin responses well beyond that elicited by wounding alone, suggesting recognition of herbivore attack. In addition to their signaling role within the plant, oxylipins can also directly influence the performance of herbivores or attract natural enemies to feeding herbivores. Here we review the literature on the regulation and function of herbivore-specific oxylipin signaling and the direct effects of oxylipins on herbivore performance.