Despite the role of sphingolipid/cholesterol rafts as signaling platforms for Fc␥ receptor II (Fc␥RII), the mechanism governing translocation of an activated receptor toward the rafts is unknown. We show that at the onset of Fc␥RII cross-linking acid sphingomyelinase is rapidly activated. This enzyme is extruded from intracellular compartments to the cell surface, and concomitantly, exofacially oriented ceramide is produced. Both non-raft and, to a lesser extent, raft sphingomyelin pools were hydrolyzed at the onset of Fc␥RII cross-linking. The time course of ceramide production preceded the recruitment of Fc␥RII to rafts and the receptor phosphorylation. Exogenous C 16 -ceramide facilitated clustering of Fc␥RII and its association with rafts. In contrast, inhibition of acid sphingomyelinase diminished both the ceramide generation and clustering of crosslinked Fc␥RII. Under these conditions, tyrosine phosphorylation of Fc␥RII and receptor-accompanying proteins was also reduced. All the inhibitory effects were bypassed by treatment of cells with exogenous ceramide. These data provide evidence that the generation of cell surface ceramide is a prerequisite for fusion of cross-linked Fc␥RII and rafts, which triggers the receptor tyrosine phosphorylation and signaling.