Merlin, a neuro®bromatosis type-2 tumor suppressor, shows signi®cant sequence similarity to ERM (Ezrin/ Radixin/Moesin) proteins, general actin ®lament/plasma membrane cross-linkers, which are regulated in a Rhodependent manner. To understand its physiological functions, we compared merlin with ERM proteins in vivo and in vitro. Quantitative immunoblotting revealed that the molar ratio of merlin/ERM in cultured epithelial or non-epithelial cells was *0.14 or *0.05, respectively. After centrifugation of cell homogenate, merlin was mostly recovered in the insoluble fraction, whereas almost half of ERM proteins were found in the soluble fraction. Merlin and ERM proteins were concentrated at microvilli when introduced into ®broblasts. In contrast, in epithelial cells, introduced merlin was co-distributed with E-cadherin in lateral membranes, whereas ERM proteins were concentrated in apical microvilli. Finally, we examined the binding anity of merlin to Rho GDP dissociation inhibitor (Rho-GDI), to which N-terminal halves of ERM proteins but not the full-length molecules speci®cally bind. In vitro binding assays revealed that the N-terminal halves of merlin isoform-I and -II as well as full-length merlin isoform-II bound to Rho-GDI with similar binding anity to ERM proteins. Immunoprecipitation con®rmed these ®ndings in vivo. These ®ndings do not favor the notion that merlin functions simply in a redundant or competitive manner to ERM proteins.