Novel active compositions having antimicrobial and anti-inflammatory activity are described, the activity provided by an active component prepared in a suspension, the active component being at least a single chain fatty acid having a carbon length of 12, or between 12 and no more than 18. The fatty acid may be esterified and/or ethylated or methylated. As an antimicrobial the active component has activity against one or more microorganisms including Staphylococcus spp., Streptococcus spp., Mycobacterium spp., Clostridium spp., and Candida spp., with an MIC as low as 0.0018 μg/ml. As an anti-inflammatory, it is at least as or is more effective than cyclosporine in preventing T-cell proliferation in response to a trigger, such as stimulation by the one or more microorganisms. The active component is more active when combined with a phospholipid (e.g., lecithin, phosphatidylcholine) and caused to form liposomal nanoparticles. It is also more active when caused to form coated liposomal nanoparticles. Compositions with said active components may be provided internally and/or topically on a surface or on skin.