Formaldehyde (HCHO), the simplest and most abundant carbonyl in the atmosphere, contributes to particulate matter (PM) formation via two in-cloud processing pathways. First, in a catalytic pathway, HCHO reacts with hydrogen peroxide (H2O2) to form hydroxymethyl hydroperoxide (HMHP), which rapidly oxidizes dissolved sulfur dioxide (SO2,aq) to sulfate, regenerating HCHO. Second, HCHO reacts with dissolved SO2,aq to form hydroxymethanesulfonate (HMS), which upon oxidation with the hydroxyl radical (OH) forms sulfate and also reforms HCHO. Chemical transport model simulations using rate coefficients from laboratory studies of the reaction rate of HMHP with SO2,aq show that the HMHP pathways reduce the SO2 lifetime by up to a factor of 2 and contribute up to ∼18% of global sulfate. This contribution rises to >50% in isoprene-dominated regions such as the Amazon. Combined with recent results on HMS, this work demonstrates that the one-carbon molecules HMHP and HCHO contribute significantly to global PM, with HCHO playing a crucial catalytic role. Significance Particulate matter, often formed via cloud processing, strongly influences the Earth’s climate and air quality. Particle composition depends on anthropogenic and biogenic emissions. Thus, in order to understand climate change, knowledge of the difference between preindustrial and current conditions is critical. Under preindustrial conditions, multifunctional organic hydroperoxides, which are strong oxidants and have the ability to contribute to particulate matter formation, are in higher concentrations in the atmosphere. In this work, we focus on the previously unknown importance of hydroxymethyl hydroperoxide, which can be formed by gas-phase reactions and in-cloud reaction of hydrogen peroxide with the simplest aldehyde, formaldehyde, revealing the catalytic role of formaldehyde, and demonstrate that this chemistry is of great importance for particle formation.