The latent membrane protein (LMP) of Epstein-Barr virus contributes to the immortalizing activity of the virus in primary, human B lymphocytes, but its mechanism of function is unknown. LMP is expressed at the plasma membrane and may act by influencing the signalling pathways of infected cells. LMP increases transcription of reporter plasmids that are responsive to members of the NF-B/Rel family of transcription factors (M.-L. Hammarskjold and M. C. Simurda, J. Virol. 66:6496-6501, 1992, and A. Krikos, C. D. Laherty, and V. M. Dixit, J. Biol. Chem. 267:17971-17976, 1992). We measured the stimulation of the activity of a reporter plasmid by LMP in Jurkat and 293 cells in transfection experiments. Expression of LMP stimulated plasmids that contained B enhancer elements but not plasmids that lacked the elements. In 293 cells, expression of the NF-B inhibitor, IB-␣, reduced the stimulatory activity of LMP.We used deletional analysis to map the domains of LMP that are required for its activity in 293 cells. Wild-type LMP stimulated NF-B by a factor of 20 to 30, while mutant derivatives of LMP that lack oncogenic activity stimulated NF-B by a factor of 3. The multiple membrane-spanning segments together with the carboxy-terminal 55 amino acid residues of LMP were required for its maximal stimulatory function. Residues within its cytoplasmic amino terminus were not required for LMP's stimulation of NF-B.