Overexpression or clustering of the transmembrane form of the extracellular matrix heparan sulfate proteoglycan agrin (TM-agrin) induces the formation of highly dynamic filopodialike processes on axons and dendrites from central and peripheral nervous system-derived neurons. Here we show that the formation of these processes is paralleled by a partitioning of TM-agrin into lipid rafts, that lipid rafts and transmembraneagrin colocalize on the processes, that extraction of lipid rafts with methyl--cyclodextrin leads to a dose-dependent reduction of process formation, that inhibition of lipid raft synthesis prevents process formation, and that the continuous presence of lipid rafts is required for the maintenance of the processes. Association of TM-agrin with lipid rafts results in the phosphorylation and activation of the Src family kinase Fyn and subsequently in the phosphorylation and activation of MAPK. Inhibition of Fyn or MAPK activation inhibits process formation. These results demonstrate that the formation of filopodia-like processes by TM-agrin is the result of the activation of a complex intracellular signaling cascade, supporting the hypothesis that TM-agrin is a receptor or coreceptor on neurons.Agrin is a proteoglycan with a molecular mass of more than 500 kDa that is expressed in many tissues (for a review, see Ref. 1). Despite its widespread expression, the function of agrin is best characterized in skeletal muscle, where it is a key organizer during formation, maintenance, and regeneration of the neuromuscular junction (2, 3). Accordingly, mice with an inactivation of the agrn gene die at birth due to nonfunctional neuromuscular junctions and subsequent respiratory failure (4).Little is known about the role of agrin in other tissues, in particular in the central nervous system (for a review, see Ref. 5). Although neurons from mice with a targeted deletion of the agrn gene form synaptic specializations in vitro and in vivo (6, 7), the acute suppression of agrin expression or function by antisense probes or antibodies influences the formation and function of interneuronal synapses (8, 9). Likewise, brains of agrin-deficient mice, whose perinatal death was prevented by the reexpression of agrin specifically in motor neurons, have a severely reduced number of pre-and postsynaptic specializations at excitatory synapses (10). In addition, agrin isoforms are highly expressed by central nervous system neurons before synapse formation, suggesting additional functions for agrin during axonal and dendritic elongation (11-16). Although these data are consistent with a role of agrin during CNS 4 synaptogenesis, the precise role of agrin during CNS development remains to be clarified.Alternative first exon usage generates either a secreted soluble agrin molecule (NtA-agrin) or a transmembrane form of agrin (TM-agrin) (17, 18). The secreted form of agrin specifically interacts with the laminin ␥1-chain via its NtA-domain, resulting in a stable association with basal laminae (19,20). In contrast, in TM-agrin, t...