Protein kinase C (PKC)-␣ phosphorylation of recombinant NG2 cytoplasmic domain and phorbol ester-induced PKC-dependent phosphorylation of full-length NG2 expressed in U251 cells are both blocked by mutation of Thr 2256 , identifying this residue as a primary phosphorylation site. In untreated U251/NG2 cells, NG2 is present along with ezrin and ␣ 3  1 integrin in apical cell surface protrusions. Phorbol ester treatment causes redistribution of all three components to lamellipodia, accompanied by increased cell motility. U251 cells expressing NG2 with a valine substitution at position 2256 are resistant to phorbol ester treatment: NG2 remains in membrane protrusions and cell motility is unchanged. In contrast, NG2 with a glutamic acid substitution at position 2256 redistributes to lamellipodia even without phorbol ester treatment, rendering transfected U251 cells spontaneously motile. PKC-␣-mediated NG2 phosphorylation at Thr 2256 is therefore a key step for initiating cell polarization and motility.Transmembrane proteoglycans such as CD44 and syndecans make important contributions to communication between the exterior and interior of the cell (1, 2). We are elucidating specific signaling functions for NG2, a membrane-spanning chondroitin sulfate proteoglycan found on several types of immature progenitor cells and on a variety of tumor types (3). Two hallmarks of both progenitor and tumor cells are increased motility and proliferation, both of which are influenced by NG2 (4 -7).Several mechanisms have been suggested to account for the contribution of NG2 to these processes. These include sequestration of growth factors (5, 8), modulation of the activity of kringle domain proteins (9, 10) and matrix metalloproteinases (11), and interaction with other cell surface molecules or with extracellular matrix components that regulate signaling pathways involved in cell proliferation and motility (12-15). NG2 engagement has been shown to result in activation of the small GTPases cdc42 and rac (15, 16) and in  1 integrin-dependent activation of focal adhesion kinase and ERK-1/2 1 (17, 18). The fundamental importance of these pathways in cell physiology underscores the potential significance of elucidating the specific contributions of NG2 to transmembrane communication.Protein phosphorylation and dephosphorylation are recognized as critical aspects of intracellular signaling. By altering protein conformation and by creating docking sites for proteinprotein interaction, phosphorylation and dephosphorylation of cytoplasmic tyrosine, serine, and threonine residues provide an extremely versatile means of regulating signaling pathways (19,20). Although the NG2 cytoplasmic domain contains several threonine residues that might serve as phosphorylation sites (21), to date we have had no experimental verification of this type of modification in NG2 and no information about potential functional consequences. The current work sheds initial light on these questions by identifying Thr 2256 as the primary site for NG2 modification by PK...