Desmosterol is an immediate precursor of cholesterol in the Bloch pathway of sterol synthesis and an abundant membrane lipid in specific cell types. The significance of the difference between the two sterols, an additional double bond at position C24 in the tail of desmosterol, is not known. Here, we provide evidence that the biophysical and functional characteristics of the two sterols differ and that this is because the double bond at C24 significantly weakens the sterol ordering potential. In model membranes, desmosterol was significantly weaker than cholesterol in promoting the formation or stability of ordered domains, and in mammalian cell membranes, desmosterol associated less avidly than cholesterol with detergentresistant membranes. Atomic scale molecular dynamics simulations showed that the double bond gives rise to additional stress in the tail, creating a rigid structure between C24 and C27 and favoring tilting of desmosterol distinct from cholesterol. Functional effects of desmosterol in cell membranes were assessed upon acutely exchanging ϳ70% of cholesterol to desmosterol. This led to impaired raft-dependent signaling via the insulin receptor, whereas non-raft-dependent protein secretion was not affected. We suggest that the choice of cholesterol synthesis route may provide a physiological mechanism to modulate raft-dependent functions in cells.In model membranes, cholesterol associates preferentially with long, saturated acyl chains, such as those in sphingolipids, thus reducing the area per lipid molecule (1, 2). There is substantial evidence to suggest that ordered lipid domains (rafts) composed of sterol and saturated lipids also exist in eukaryotic cell membranes and play important roles in numerous biological processes (3, 4). Lipid rafts are considered to exist in a liquid-ordered (L o ) 2 state characterized by tight ordering but relatively high lateral mobility of lipids and operationally often defined as detergent-resistant membranes (DRMs) (5, 6). Instead, unsaturated phospholipids are loosely packed, forming a liquid-disordered (L d ) membrane that is solubilized upon the addition of mild detergents. At least in model membranes, cholesterol is able to promote the separation of L o and L d domains (7-9). In cells, cholesterol levels influence the domain partitioning and biological activity of proteins that co-isolate in detergent-resistant membranes (DRMs) (10, 11).Taking the postulated critical role for cholesterol in raft formation and the diversity of sterols in biological materials, the sterol structural requirements for promoting ordered domain formation are highly relevant. Until now, the effects of sterol/steroid structure have mostly been addressed in model membranes. Slight modifications of the cholesterol structure (e.g. a shift of the double bond in the sterol ring or alteration of the 3-OH group) change the domain-forming properties of the molecule (12-14). Among the structurally closest relatives of cholesterol are its immediate biosynthetic precursors. The only difference ...