Single-walled carbon nanotubes (SWCNTs) have been incorporated in many emerging applications in the biomedical field including chemical sensing, biological imaging, drug delivery, and photothermal therapy. To overcome inherent hydrophobicity and improve their biocompatibility, pristine SWCNTs are often coated with surfactants, polymers, DNA, proteins, or lipids. In this paper, we report the effect of polyunsaturated fatty acids (PUFAs) on SWCNT photoluminescence. A decrease in the SWCNT bandgap emission (E-11) and a new red-shifted emission (E-11(-)) were observed in the presence of PUFAs. We attribute the change in SWCNT photoluminescence to the formation of oxygen containing defects by lipid hydroperoxides through photo-oxidation. The observed changes in near-infrared emission of SWCNTs are important for understanding the interaction between SWCNTs and lipid biocorona. Our results also indicate that photoexcited SWCNTs can catalyze lipid peroxidation similarly to lipoxygenases.