Ordered lipid domains enriched in sphingolipids and cholesterol (lipid rafts) have been implicated in numerous functions in biological membranes. We recently found that lipid domain/raft formation is dependent on the sterol component having a structure that allows tight packing with lipids having saturated acyl chains (Xu, X., and London, E. (2000) Biochemistry 39, 844 -849). In this study, the domain-promoting activities of various natural sterols were compared with that of cholesterol using both fluorescence quenching and detergent insolubility methods. Using model membranes, it was shown that, like cholesterol, both plant and fungal sterols promote the formation of tightly packed, ordered lipid domains by lipids with saturated acyl chains. Surprisingly ergosterol, a fungal sterol, and 7-dehydrocholesterol, a sterol present in elevated levels in Smith-Lemli-Opitz syndrome, were both significantly more strongly domain-promoting than cholesterol. Domain formation was also affected by the structure of the sphingolipid (or that of an equivalent "saturated" phospholipid) component. Sterols had pronounced effects on domain formation by sphingomyelin and dipalmitoylphosphatidylcholine but only a weak influence on the ability of cerebrosides to form domains. Strikingly it was found that a small amount of ceramide (3 mol %) significantly stabilized domain/raft formation. The molecular basis for, and the implications of, the effects of different sterols and sphingolipids (especially ceramide) on the behavior and biological function of rafts are discussed.There is strong evidence supporting a model of eukaryotic plasma membrane structure in which domains (rafts) rich in cholesterol and lipids with relatively saturated acyl chains (i.e. sphingolipids) co-exist with domains rich in phospholipids attached to unsaturated acyl chains (1-6). Rafts have a distinct protein composition that is especially enriched in proteins anchored to membranes by saturated acyl chains while relatively depleted of most transmembrane proteins. Rafts have been implicated in numerous cellular processes, including signal transduction, protein and lipid sorting, cellular entry by toxins and viruses, and viral budding (4, 6 -15). Thus, an understanding of the principles that underlie raft formation is important with regard to the study of eukaryotic membrane function.We have shown that sphingolipid/cholesterol domains are likely to exist in the tightly packed liquid-ordered (L o ) state, whereas unsaturated phospholipid-rich domains are more likely to be in the less ordered liquid crystalline (L ␣ ) phase even if they contain large amounts of cholesterol (16 -18). The tight packing of lipids in the L o state gives rafts their characteristic resistance to solubilization by Triton X-100 (1, 18).Cholesterol can promote separation of lipid mixtures into co-existing L ␣ and L o domains (17,19) and is critical for raft formation in cells (2-4, 6). We recently found that the ability of cholesterol to pack tightly with saturated lipids is a key to its abilit...