In a previous study, we showed that protein kinase C II (PKC II) translocated to a novel juxtanuclear compartment as observed in several cell types (Becker, K. P., and Hannun, Y. A. (2003) J. Biol. Chem. 278, 52747-52754). In this study, we noted the absence of this translocation in MCF-7 breast cancer cells, and we examined the mechanisms underlying this selectivity of response. We show that sustained stimulation of PKC II with 4-phorbol 12-myristate 13-acetate (PMA) resulted in accumulation of ceramide in MCF-7 cells but not in those cells that showed juxtanuclear translocation of PKC II. Addition of exogenous ceramides or formation of endogenous ceramide by the action of bacterial sphingomyelinase prevented PMA-induced translocation of PKC II in HEK 293 cells. On the other hand, inhibition of ceramide accumulation with fumonisin B1 restored the ability of PMA to induce translocation of PKC II in MCF-7 cells. Taken together, the results showed that endogenous ceramide is both necessary and sufficient for preventing juxtanuclear translocation of PKC II in response to PMA. Investigation of the mechanisms of ceramide generation in response to PMA revealed that PMA activated the salvage pathway of ceramide formation and not the de novo pathway. This conclusion was based on the following: 1) the ability of fumonisin B1 but not myriocin to inhibit ceramide formation, 2) the ability of PMA to induce increases in palmitate-labeled ceramide only under chase labeling but not acute pulse labeling, 3) the induction of the levels of sphingosine but not dihydrosphingosine in response to PMA, and 4) induction of sphingomyelin hydrolysis in response to PMA. Together, these results define a novel pathway of regulated formation of ceramide, the salvage pathway, and they define a role for this pathway in regulating juxtanuclear translocation of PKC II.The isoenzymes of protein kinase C (PKC), 1 designated as the classical PKCs, comprise a subfamily of closely related isoenzymes that share similar structural features and mechanisms of action and regulation. This group consists of PKC ␣, PKC I, PKC II, and PKC ␥ that share highly homologous regulatory domains and are activated by diacylglycerol (DAG) and calcium. Thus, they serve as signal transducers for the action of extracellular agonists that activate phospholipases C, which results in the generation of DAG and calcium (2, 3).Activation of PKC requires the translocation of PKC to the plasma membrane in response to acutely generated DAG (3, 4). This translocation also places PKC in proximity to specific membrane substrates. Thus, the dynamic interaction of PKC with membranes has emerged as a key mechanism in regulating its function.Previous studies from our laboratory (1), supported by the recent results from Hu and Exton (5), have demonstrated a novel translocation of PKC ␣ and II to a juxtanuclear region. This novel translocation is seen with prolonged stimulation of these two isoenzymes of PKC by PMA (for at least 30 min) and follows the initial translocation of ...