Caveolin-1 has a segment of hydrophobic amino acids comprising approximately residues 103-122. We have performed an in silico analysis of the conformational preference of this segment of caveolin-1 using PepLook. We find that there is one main group of stable conformations corresponding to a hydrophobic U bent model that would not traverse the membrane. Furthermore, the calculations predict that substituting the Pro 110 residue with an Ala will change the conformation to a straight hydrophobic helix that would traverse the membrane. We have expressed the P110A mutant of caveolin-1, with a FLAG tag at the N terminus, in HEK 293 cells. We evaluate the topology of the proteins with confocal immunofluorescence microscopy in these cells. We find that FLAG tag at the N terminus of the wild type caveolin-1 is not reactive with antibodies unless the cell membrane is permeabilized with detergent. This indicates that in these cells, the hydrophobic segment of this protein is not transmembrane but takes up a bent conformation, making the protein monotopic. In contrast, the FLAG tag at the N terminus of the P110A mutant is equally exposed to antibodies, before and after membrane permeabilization. We also find that the P110A mutation causes a large reduction of endocytosis of caveolae, cellular lipid accumulation, and lipid droplet formulation. In addition, we find that this mutation markedly reduces the ability of caveolin-1 to form structures with the characteristic morphology of caveolae or to partition into the detergent-resistant membranes of these cells. Thus, the single Pro residue in the membrane-inserting segment of caveolin-1 plays an important role in both the membrane topology and localization of the protein as well as its functions.Caveolae are specialized domains of the plasma membrane found in most cell types and particularly abundant in highly differentiated cells, such as endothelial cells, adipocytes, or muscle cells. They were described as invaginations of the plasma membrane (1, 2). Caveolae appear to have a number of functions, including roles in signal transduction, lipid exchange, cell entry, and intracellular delivery of bacterial toxins, viruses, and growth factors (3-13), but the molecular aspects of their formation and functions are still being unraveled (14). Electron microscopy allows the visualization of caveolae as 50 -100-nm flask-shaped invaginations of the plasma membrane or as circularized single or clustered vesicles underneath the plasma membrane. Caveolae are specialized membrane microdomains enriched in sphingolipids, cholesterol, and receptor proteins. It is also the site of NO production and of cholesterol efflux from the cell. Several isoforms of caveolin are characteristic proteins of caveolae (15, 16).Caveolin inserts into membranes of phosphatidylcholine in a cholesterol-dependent manner (17) and is anchored to the membrane with a hydrophobic segment comprising residues 105-125 as well as with three palmitoyl chains attached to Cys residues. Palmitoylated proteins are known to tra...