Brassinosteroids (BRs) are plant-specific steroidal hormones; BR homeostasis is crucial for various aspects of plant growth and development. However, to date, the BR inactivation process has not been thoroughly elucidated. In this study, we identified and characterized a novel BAHD family acyltransferase gene, BRASSINOSTEROID INACTIVATOR2 (BIA2), involved in BR inactivation. BIA2-overexpressing (OE-BIA2) plants displayed typical BR-deficient phenotypes, which were rescued by exogenous BR treatment. Real-time qRT-PCR and transcriptome analyses showed that expression levels of virtually all of the BR biosynthetic genes were increased, whereas the expression of many BR inactivation genes was reduced in OE-BIA2 plants. Root inhibition assays showed that the root growth of OE-BIA2 plants was inhibited. We obtained plants with an intermediate phenotype by crossing the OE-BIA2 plants with BRASSINOSTEROID-INSENSITIVE1 (BRI1)-overexpressing plants. The null BIA2 mutants had longer hypocotyls in the dark. BIA2 was predominantly expressed in roots, and its expression was induced by 24-epibrassinolide or dark treatment, but it exhibited a differential expression pattern compared with its homologue, BIA1. Furthermore, genetic transformation with point-mutant and deleted-BIA2 constructs confirmed that the HXXXD motif is essential for the function of BIA2. Taken together, these findings indicate that BIA2 is a typical BAHD acyltransferase that is involved in BR homeostasis and may inactivate bioactive BRs by esterification, particularly in roots and hypocotyls under dark conditions.