Theoretical studies predict hydrophobic matching between transmembrane domains of proteins and bilayer lipids to be a physical mechanism by which membranes laterally self-organize. We now experimentally study the direct consequences of mismatching of transmembrane peptides of different length with bilayers of different thicknesses at the molecular level. In both model membranes and simulations we show that cholesterol critically constrains structural adaptations at the peptide-lipid interface under mismatch. These constraints translate into a sorting potential and lead to selective lateral segregation of peptides and lipids according to their hydrophobic length.H ydrophobicity is the key criterion for lipids and proteins to integrate into membranes (1). This self-assembly is driven by the minimization of hydrophobic surface area exposed to the aqueous phase (2). Next to sterols, eukaryotic membranes contain a variety of phospholipids with different chain length (3) and proteins with a variety of transmembrane (TM) domain lengths (4). Why cell membranes contain so many lipids is still enigmatic. But one reason could be membrane sorting due to grouping of TM proteins and lipids with similar hydrophobic length.The "mattress model" predicts that the embedding of a rigid, helical TM protein into a fluid bilayer causes the lipids to adapt locally to a mismatch (5). In this way exposure of hydrophobic surface area is minimized. The adaptive flexing and straightening of the lipids can also be accompanied by a tilting of the protein (6). Because of these strain-causing adaptations of the bilayer, selective association of matching lipids with TM proteins as well as macroscopic sorting processes according to hydrophobic length have been predicted by theory and simulation (7,8). Membrane properties such as elasticity-modulated by cholesterolwere also predicted as crucial parameters (9). Such mismatchdependent, cholesterol-induced sorting has indeed been proposed as a retention mechanism for the Golgi-resident proteins in the secretory pathway (10).Due to the complexity of cell membranes, model membranes have proven a valuable system to investigate hydrophobic matching (11-13). Hydrophobic peptides of the poly-leucine type have been used as generic TM proteins because of the ease of their organic solvent-based reconstitution (14,15). From these experiments, it has become clear that TM proteins indeed tolerate moderate mismatch with the bilayer (13,14,16). However, large mismatch as well as cholesterol have been found to reduce efficiency of TM peptide incorporation into bilayers, suggesting that there are energetic limitations to mismatch buffering (12).Despite indication for selective protein-lipid interactions and hydrophobic matching (17, 18), actual sorting of TM proteins and accompanying lipid cosorting has not been reconstituted in vitro. Therefore, it remains unclear whether hydrophobic mismatch is a significant parameter in the organization of proteinacious membranes.Using TM peptides and lipids of defined acyl chain...