In yeast, the long-chain sphingoid base phosphate phosphohydrolase Lcb3p is required for efficient ceramide synthesis from exogenous sphingoid bases. Similarly, in this study, we found that incorporation of exogenous sphingosine into ceramide in mammalian cells was regulated by the homologue of Lcb3p, sphingosine-1-phosphate phosphohydrolase 1 (SPP-1), an endoplasmic reticulum resident protein. Sphingosine incorporation into endogenous long-chain ceramides was increased by SPP-1 overexpression, whereas recycling of C 6 -ceramide into long-chain ceramides was not altered. The increase in ceramide was inhibited by fumonisin B 1 , an inhibitor of ceramide synthase, but not by ISP-1, an inhibitor of serine palmitoyltransferase, the rate-limiting step in the de novo biosynthesis of ceramide. Mass spectrometry analysis revealed that SPP-1 expression increased the incorporation of sphingosine into all ceramide acyl chain species, particularly enhancing C16:0, C18:0, and C20:0 long-chain ceramides. The increased recycling of sphingosine into ceramide was accompanied by increased hexosylceramides and, to a lesser extent, sphingomyelins. Sphingosine kinase 2, but not sphingosine kinase 1, acted in concert with SPP-1 to regulate recycling of sphingosine into ceramide. Collectively, our results suggest that an evolutionarily conserved cycle of phosphorylation-dephosphorylation regulates recycling and salvage of sphingosine to ceramide and more complex sphingolipids.Sphingolipids are a structurally diverse family of membrane lipids. Several lines of evidence have implicated metabolites of sphingolipids such as ceramide, sphingosine, and sphingosine 1-phosphate (S1P) 5 in diverse cellular processes (1, 2). Ceramide and sphingosine have been implicated in pathways involving stress responses, cell differentiation, apoptosis, and cell cycle arrest (1). Unlike ceramide and sphingosine, S1P promotes cell growth and survival and inhibits apoptosis (2, 3). Because of their inter-convertibility and opposing effects, the dynamic balance between S1P and ceramide/sphingosine has been proposed to be an important factor that determines cell fate (2). Accumulating evidence suggests that the S1P/ceramide balance is ultimately regulated by the relative activities of enzymes controlling the turnover of these sphingolipid metabolites. However, the molecular mechanisms involved in the regulation of intracellular levels of these sphingolipids are not yet fully understood. Cellular levels of S1P are kept low by tight spatio-temporal regulation of its synthesis and degradation. Sphingosine kinases (SphKs) catalyze the synthesis of S1P by phosphorylation of sphingosine. Two distinct SphK isoforms, SphK1 and SphK2, have been cloned and characterized in mammals (2). Diverse external stimuli, particularly growth and survival factors, stimulate SphK1, generating S1P that has been implicated in their mitogenic and anti-apoptotic effects (4, 5). In contrast to SphK1, rather than promoting growth and survival, overexpression of SphK2 suppressed growth and...