Microglia act as the protective immune cell of the brain. By surveying the tissue to identify and rectify problems, they function to maintain the health of brain cells. The prion protein N-terminal cleavage fragment, N1, has demonstrated neuroprotective activities in vitro and in vivo. This study aimed to elucidate whether N1 could modulate microglial function and, if so, determine the consequences for the surrounding tissue. Using a mixed neuronal lineage and microglia co-culture system, we showed that N1 stimulation changed overall morphology and metabolism, suggesting enhanced cellular viability. Furthermore, N1 induced an increase in Cxcl10 secretion in the co-cultures. Recombinant Cxcl10, administered exogenously, mediated the changes in the mixed neuronal lineage culture morphology and metabolism in the absence of microglia, but no effect of Cxcl10 was observed on microglia cultured on their own. Direct cell-to-cell contact was required for N1 to influence microglia in the co-cultures, and this was linked with restructuring of microglial membrane composition to include a higher GM1 content at interaction sites with surrounding cells. Our findings show that N1 can play a regulatory role in microglial function in the context of an interconnected network of cells by changing both cellular interaction sites and cytokine secretion. Within the brain different cell types act synergistically to maintain the function of the whole organ. Despite our understanding of the roles of different cellular types, there is still much we do not know about inter-cellular communications. Microglia (MG) have many essential functions in the healthy central nervous system that include neurodevelopment, synapse sensing and remodeling, and immune surveillance 1-4. They are known to survey the tissue looking for infection or damage and react to remove or correct this accordingly 5,6. Depending upon the nature of the stimulus, MG may react by assuming a phagocytic phenotype or by changing their cytokine secretion 2,7. The signals that change the activation states of MG are diverse requiring complex cellular-crosstalk to communicate cell health 5,6,8. The prion protein (PrP) is a small, plasma membrane-tethered glycoprotein of unresolved function. In addition to glycosylation and membrane tethering via a glycosylphosphatidylinositol (GPI) anchor, PrP undergoes various other post-translational modifications. These post-translational modifications include endoproteolytic cleavage at three or more sites 9,10. Of the cleavage events, termed α-, βand γ-cleavages, the αand β-cleavages have been most widely studied. The α-cleavage site is around amino acid 111 and produces N1 (~23-111) and C1 (~112-231) fragments with β-cleavage occurring around residue 89 and producing N2 (~23-89) and C2 (~90-231) fragments. The C-terminal cleavage fragments retain the GPI anchor and remain associated with cell membranes whereas the N-terminal cleavage fragments are no longer tethered and predominantly detected extracellularly in culture 11-13. Despite no cons...