The major molecular risk factor for Alzheimer disease so far identified is the amyloidogenic peptide A 42 . In addition, growing evidence suggests a role of cholesterol in Alzheimer disease pathology and A generation. However, the cellular mechanism of lipid-dependent A production remains unclear. Here we describe that the two enzymatic activities responsible for A production, -secretase and ␥-secretase, are inhibited in parallel by cholesterol reduction. Importantly, our data indicate that cholesterol depletion within the cellular context inhibits both secretases additively and independently from each other. This is unexpected because the -secretase -site amyloid precursor protein cleaving enzyme and the presenilin-containing ␥-secretase complex are structurally different from each other, and these enzymes are apparently located in different subcellular compartments. The parallel and additive inhibition has obvious consequences for therapeutic research and may indicate an intrinsic cross-talk between Alzheimer disease-related amyloid precursor protein processing, amyloid precursor protein function, and lipid biology.A peptides are the main proteinaceous component of Alzheimer disease amyloid plaques. A is derived from posttranslational cleavage of the amyloid precursor protein (APP). Cleavage of APP by BACE I (1) at the N terminus of the A sequence generates a C-terminal fragment (C99) that includes the entire A sequence. In mouse cortical neurons BACE I is essential for APP -cleavage (2). A second proteolytic activity termed ␥-secretase cleaves APP at the C-terminal end of the A sequence, releasing A 40 and A 42 during normal cellular metabolism of APP (3, 4). A fraction of APP is processed by the ␣-secretase pathway in which APP is cleaved within the A region thus precluding A formation. However, neurons predominately use the -secretory pathway at the expense of the ␣-secretory pathway to process APP (5). Moreover, neurons produce significant amounts of intracellular A in vivo and in vitro (6 -8). A specific feature of ␥-secretase is that it is capable of cleaving APP only after a major part of the APP luminal domain is removed. Under normal circumstances it is therefore not possible to assay ␥-secretase activity directly.Analyses of APP-FAD mutations (9) as well as of PS-FAD mutations (10) have corroborated the assumption that a small increase in A 42 levels causes AD (11). The subcellular activities of both -and ␥-secretase have been extensively studied. Processing of APP to A differs for different intracellular compartments (12) and depends among others on the interaction of membrane composition and the APP transmembrane domain (13). Variable amounts of -secretase activity were found along the secretory pathway starting in the ER/intermediate compartment, post-Golgi vesicles, TGN, and endosomes (14, 15). In contrast, ␥-secretase activity was found to be prominent in the ER, TGN, and plasma membrane and to produce different A isoforms in different compartments (reviewed by Hartmann (...