The Rab small G protein family participates in intracellular vesicle transport, including exocytosis and endocytosis. The cDNA encoding a novel Rab-related small G protein (Rab38) has been cloned from rat lung cDNA library and recorded in GenBank (accession no. M94043). However, the expression and localization of the protein in the lung remains primarily unknown. We produced polyhistidine-tagged recombinant Rab38 and a polyclonal antibody with a synthetic peptide. Immunohistochemistry demonstrated that the protein is specifically localized in alveolar type II cells and in bronchial epithelial cells. In situ hybridization using a digoxygenin-labeled RNA riboprobe clearly showed that the mRNA of the protein is localized in alveolar type II cells and bronchial epithelial cells, especially terminal airway epithelial cells. Western blot and reverse transcriptase-polymerase chain reaction showed distinct expression of the protein and mRNA in isolated alveolar type II cells, but not in alveolar macrophages. The native protein was predominantly hydrophobic and was enriched in a high-density vesicle fraction but was barely detectable in nuclear and lamellar body fractions in alveolar type II cells. Immunofluorescence cytochemistry performed on cultured alveolar type II cells showed that Rab38 distributed extensively in the cytoplasm with a distribution pattern similar to endoplasmic reticulum rather than other subcellular organelles. These results suggest that this novel rab small G protein (Rab38) mediates vesicular transport in terminal airway epithelium. Small GTP-binding proteins are a group of monomeric intracellular proteins that have GTP/GDP binding and GTPase activities, and mediate essential cell functions, including cell growth/differentiation, cytoskeletal configuration (cell movement, change of shape, and contraction and relaxation), and intracellular vesicle transport, including exocytosis and endocytosis. 1,2 The ras p21 was found first and was soon followed by several other proteins. Now, more than 50 members form a ras superfamily. They have highly conserved domains, contributing to interaction with guanine nucleotides, in organisms from yeast through mammals. Most of these proteins are prenylated at their carboxy termini and specific subsets are also modified by palmitoylation. The ras-related superfamily is now recognized as consisting of three major gene families (ras, rho, and rab) and other minor families.The rab family has more than 30 members, the largest number among small G proteins. The Rab proteins are known to localize to specific cell organelles, and are found in both membrane-bound and cytosolic forms. 2,3 Thus, they are believed to mediate intracellular vesicle transport among restricted intracellular compartments. Although current information in the sequence database indicates more than 30 members, there are few Rab proteins for which intracellular localization and function have been clarified.A novel cDNA has been cloned from the rat lung cDNA library encoding a rab-related small G protei...