The effect of the bacterial cytolytic toxin, streptolysin O (SLO), on rabbit erythrocyte membranes, liposomes, and lipid dispersions was examined. SLO produced no gross alterations in the major erythrocyte membrane proteins or lipids. However, when erythrocytes were treated with SLO and examined by electron microscopy, rings and "C"-shaped structures were observed in the cell membrane. The rings had an electron-dense center, 24 nm in diameter, and the overall diameter of the structure was 38 nm. Ring formation also occurred when erythrocyte membranes were fixed with glutaraldehyde and OsO4 before the addition of toxin. In contrast, rings were not seen when erythrocytes were treated with toxin at 0~indicating that adsorption of SLO to the membrane is not sufficient for ring formation since toxin is known to bind to erythrocytes at that temperature. The ring structures were present on lecithin-cholesterol-dicetylphosphate liposomes after SLO treatment, but there was no release of the trapped, internal markers, K2CrO4 or glucose. The crucial role of cholesterol in the formation of rings and C's was demonstrated by the fact that these structures were present in toxin-treated cholesterol dispersions, but not in lecithin-dicetylphosphate dispersions nor in the SLO preparations alone. The importance of cholesterol was also shown by the finding that no rings were present in membranes or cholesterol dispersions which had been treated with digitonin before SLO was added. Although the rings do not appear to be "holes" in the membrane, a model is proposed which suggests that cholesterol molecules are sequestered during ring and C-structure formation, and that this process plays a role in SLO-induced hemolysis.Streptolysin O (SLO) is a bacterial toxin produced by virtually all strains of Streptococcus pyogenes. The toxin is a protein with a molecular weight of approximately 60,000 daltons, and is characteristic of a group of cytolytic toxins known as the oxygen-labile toxins (3). The toxins in this group are produced by several different gram-positive bacteria, and possess a number of common properties: they are activated by SH compounds: they appear to be antigenically related; and their biological activity is completely inhibited by low concentrations of cholesterol and certain related sterols.Hemolysis occurs within minutes after the addi-160 THE JOURNAL OF CELL BIOLOGY 9 VOLUME 67, 1975 9 pages 160-173 tion of SLO to erythrocytes, and toxic effects of SLO on several types of mammalian cells in culture have been demonstrated (13). The speed with which sensitive cells are affected by the toxin suggests that the cell membrane is the primary site of action. Several lines of indirect evidence suggest that membrane cholesterol is the binding site and/or target of SLO action. Only those cells which contain cholesterol in their membranes are susceptible to the toxin, SLO is "inactivated" only by the membrane lipid fraction which contains cholesterol, and the addition of exogenous cholesterol to SLO inhibits toxin action....