Host factors that enable dengue virus (DENV) to propagate in the mosquito host cells are unclear. It is known that cellular cholesterol plays an important role in the life cycle of DENV in human host cells but unknown if the lipid requirements differ for mosquito versus mammalian. In mosquito Aedes aegypti, sterol carrier protein 2 (SCP-2) is critical for cellular cholesterol homeostasis. In this study, we identified SCP-2 as a critical host factor for DENV production in mosquito Aag2 cells. Treatment with a small molecule commonly referred to as SCPI-1, (N-(4-{[4-(3,4-dichlorophenyl)-1,3-thiazol-2-yl]amino}phenyl)acetamide hydrobromide, a known inhibitor of SCP-2, or knockdown of SCP-2 dramatically repressed the virus production in mosquito but not mammalian cells. We showed that the intracellular cholesterol distribution in mosquito cells was altered by SCP-2 inhibitor treatment, suggesting that SCP-2-mediated cholesterol trafficking pathway is important for DENV viral production. A comparison of the effect of SCP-2 on mosquito and human cells suggests that SCPI-1 treatment decreases cholesterol in both cell lines, but this decrease in cholesterol only leads to a decline in viral titer in mosquito host cells, perhaps, owing to a more drastic effect on perinuclear cholesterol storages in mosquito cells that was absent in human cells. SCP-2 had no inhibitory effect on another enveloped RNA virus grown in mosquito cells, suggesting that SCP-2 does not have a generalized anti-cellular or antiviral effect. Our cell culture results imply that SCP-2 may play a limiting role in mosquito—dengue vector competence.