Enzyme acting on the peroxisomal beta-oxidation pathway for fatty acids. Protects the cells from the increase of the harmful xenobiotic fatty acids incorporated from their diets and optimizes cellular lipid composition for proper development. a (3S)-3-hydroxyacyl-CoA + NAD(+) = a 3-oxoacyl-CoA + H(+) + NADH Lipid metabolism; fatty acid beta-oxidation. Belongs to the short-chain dehydrogenases/reductases (SDR) family.