We have previously reported preferential release of polyunsaturated FAs during hydrolysis of lipoprotein phosphatidylcholine (PtdCho) by group X secretory phospholipase A 2 (sPLA 2 ) and preferential release of oligounsaturated FAs during hydrolysis of lipoprotein PtdCho by group V sPLA 2 , but the mechanism of this selectivity has remained unknown. We now show that the rate and specificity of hydrolysis are affected by relative increases in endogenous SM and free cholesterol (FC) during the lipase digestion. The highest preference for arachidonate release from LDL and HDL by group X sPLA 2 was observed for residual SM/PtdCho molar ratio of 1.2 and 0.4, compared with the respective starting ratios of 0.4 and 0.2, as measured by liquid chromatography/electrospray ionization-mass spectrometry. Group V sPLA 2 showed preferential release of linoleate from LDL and HDL at SM/PtdCho ratio 1.5 and 0.6, respectively. We have attributed the change in FA specificity to segregation of molecular species of PtdCho and of sPLA 2 s between disordered and ordered SM/FC/ PtdCho lipid phases. The increases in SM and FC during digestion with group IIA sPLA 2 were more limited, and a preferential hydrolysis of any FAs was not observed. A preferential release of linoleate during hydrolysis of phosphatidylcholine (PtdCho) by group V secretory phospholipase A 2 (sPLA 2 ) was first reported in liposomal (1-3) and later in lipoprotein (4-6) incubations, but the mechanism of this selectivity has remained unknown. Early work (1, 2) attributed the selective enzyme activity to a difference in the physical state of substrate between the sonicate and the natural membranes that may contain a more optimum mixture of phospholipids. Alternatively, a preferential release of arachidonate by group V sPLA 2 exogenously added to cell cultures has been attributed to its combined action with cytosolic PLA 2 (7). Subsequent work with liposomes suggested a special role for ceramides (3) in regulation of group V sPLA 2 hydrolysis of plasma PtdCho, which, however, was difficult to reconcile with the apparent absence of sphingomyelinase activity from plasma lipoproteins (6,8,9). Likewise, the apparent preferential release of PtdCho arachidonate by group X sPLA 2 during liposomal (10, 11), lipoprotein (4-6), and cellular (10, 12) incubations has remained unexplained. In contrast, group IIA sPLA 2 apparently attacked liposomal and lipoprotein PtdCho without FA discrimination, although at a significantly lower rate than group V and group X sPLA 2 s (3,5,9,10,12). Therefore, the true differences in the activity and apparent FA specificity of PtdCho hydrolysis by the sPLA 2 s have remained obscure.In other studies, a preferential release of arachidonate by group IIA sPLA 2 from phosphatidylethanolamine/ phosphatidylserine (PtdEtn/PtdSer) micelles was observed (13,14) in the presence of added SM/ceramide and was attributed to phase separation and exclusion of polyunsaturates from the ordered liquid phase formed under these conditions. The inhibitory effect...