Subcellular compartmentalization has become an important theme in cell signaling such as spatial regulation of Ras by RasGRP1 and MEK/ERK by Sef. Here, we report spatial regulation of Raf kinase by RKTG (Raf kinase trapping to Golgi). RKTG is a seven-transmembrane protein localized at the Golgi apparatus. RKTG expression inhibits EGF-stimulated ERK and RSK phosphorylation, blocks NGF-mediated PC12 cell differentiation, and antagonizes Ras-and Raf-1-stimulated Elk-1 transactivation. Through interaction with Raf-1, RKTG changes the localization of Raf-1 from cytoplasm to the Golgi apparatus, blocks EGF-stimulated Raf-1 membrane translocation, and reduces the interaction of Raf-1 with Ras and MEK1. In RKTG-null mice, the basal ERK phosphorylation level is increased in the brain and liver. In RKTG-deleted mouse embryonic fibroblasts, EGF-induced ERK phosphorylation is enhanced. Collectively, our results reveal a paradigm of spatial regulation of Raf kinase by RKTG via sequestrating Raf-1 to the Golgi apparatus and thereby inhibiting the ERK signaling pathway.R af kinase relays the signals from Ras to MEK (MAPK and ERK kinase) and ERK/MAPK (1, 2). This pathway regulates many fundamental cellular functions, including cell proliferation, apoptosis, differentiation, motility, and metabolism, and is implicated in many human diseases including cancer (3). In the Ras/Raf/MEK/ ERK signaling cascade, several players within this pathway are exquisitely regulated by subcellular compartmentalization (4, 5). Kinase suppressor of Ras (KSR) is a scaffold protein that coordinates the assembly of multiprotein MAPK complex in plasma membrane (6). -Arrestin could also function as a scaffold protein to target the MAPK protein complex to early endosome (7). Different lipid anchors are able to shuttle Ras between different membrane compartments to modulate subcellular Ras signaling (8-10). In T lymphocyte, Ras could be activated in situ on the Golgi apparatus via the Ras exchange factor RasGRP1, which is activated by phospholipase C (11). Compartmentalized signaling of Ras/ MAPK in T lymphocyte on either plasma membrane or Golgi apparatus leads to distinct output of ERK activation and thereby determines the threshold of thymic selection (12). MEK could be targeted to endosome by a scaffold protein MP1 through adaptor p14 (13). It was also found that MEK/ERK can be recruited to the Golgi by Sef, and that such spatial regulation blocks the Ras signaling to the nucleus but not to the cytosol (14). However, how Raf is regulated in a spatial manner has not been characterized.The activity of Raf kinase is mainly regulated by phosphorylation events and scaffold proteins (1, 2). In addition, Raf could be negatively regulated by interaction with other proteins. Raf kinase inhibitor protein (RKIP) is able to interact with Raf-1, MEK, and ERK (15). RKIP blocks Raf-1 signaling to MEK by competitively disrupting the interaction between Raf-1 and MEK because both Raf-1 and MEK bind to overlapping sites in RKIP (15, 16). After stimulation of G protein...