Although it is well established that Ras requires membrane localization for activation of its target molecule, Raf-1, the reason for this requirement is not fully understood. In this study, we found that modified Ras, which is purified from Sf9 cells, could activate Raf-1 in a cellfree system, when incorporated into liposome. Using a bifunctional cross-linker and a protein-fragmentation complementation assay, we detected dimer formation of Ras in the liposome and in the intact cells, respectively. These results suggest that dimerization of Ras in the lipid membrane is essential for activation of Raf-1. To support this, we found that, when fused to glutathione S-transferase (GST), unprocessed Ras expressed in Escherichia coli could bypass the requirement for liposome. A Ras-dependent Raf-1 activator, which we previously reported (Mizutani, S., Koide, H., and Kaziro, Y. (1998) Oncogene 16, 2781-2786), was still required for Raf-1 activation by GST-Ras. Furthermore, an enforced dimerization of unmodified oncogenic Ras mutant in human embryonic kidney (HEK) 293 cells, using a portion of gyrase B or estrogen receptor, also resulted in activation of Raf-1. From these results, we conclude that membrane localization allows Ras to form a dimer, which is essential, although not sufficient, for Raf-1 activation.Ras GTPases (Ha-, Ki-, and N-Ras) are the key proteins in eukaryotic signal transduction directed toward cellular proliferation and differentiation (1-3). The biological activity of Ras is controlled by a regulated GDP/GTP cycle. Guanine-nucleotide exchange factors (Ras-GRF1/2, mSos1/2) induce dissociation of GDP from Ras⅐GDP to form an active, GTP-bound form of Ras. On the other hand, GTPase-activating proteins (p120GAP, NF1) accelerate the intrinsic GTP hydrolytic activity of Ras to promote the formation of an inactive, GDP-bound form of Ras. Upon binding of GTP, Ras alters its conformation to interact with multiple downstream effectors. One of the well characterized effectors is a serine/threonine kinase Raf-1 (4, 5), which induces activation of a dual specificity kinase MEK.1 Activated MEK in turn activates a serine/threonine kinase ERK, which phosphorylates a variety of proteins including protein kinases, transcription factors, and cytoskeletal proteins (6).Although it has been demonstrated that Ras binds to Raf-1 directly, the precise mechanism of Raf-1 activation by Ras is not fully understood. According to the current model (5), when Ras is activated, the effector region of Ras interacts with the Ras binding domain of Raf-1, which leads to the binding of cysteine-rich domain of Raf-1 to Ras. These interactions relieve the masking of the C-terminal catalytic domain of Raf-1 by the N-terminal regulatory domain and allow Raf-1 to interact with the downstream kinase, MEK. However, since direct interaction of Ras with Raf-1 is insufficient for Raf-1 activation (5, 7), an additional molecule(s) has been expected to be involved in this activation. In fact, using a cell-free system, we have found a Ras-dependent Ra...