The present study describes the role of glycosphingolipids in neuroinflammatory disease and investigates tumor necrosis factor ␣ (TNF␣)-induced astrogliosis following spinal cord injury. Astrogliosis is the hallmark of neuroinflammation and is characterized by proliferation of astrocytes and increased glial fibrillary acidic protein (GFAP) gene expression. In primary astrocytes, TNF␣ stimulation increased the intracellular levels of lactosylceramide (LacCer) and induced GFAP expression and astrocyte proliferation. D-Threo-1-phenyl-2-decanoylamino-3-morpholino-1-propanol⅐HCl (PDMP), a glucosylceramide synthase and LacCer synthase (GalT-2) inhibitor, inhibited astrocyte proliferation and GFAP expression, which were reversed by exogenous supplementation of LacCer but not by other glycosphingolipids. TNF␣ caused a rapid increase in the activity of GalT-2 and synthesis of LacCer. Silencing of GalT-2 gene using antisense oligonucleotides also attenuated the proliferation of astrocytes and GFAP expression. The PDMP and antisense-mediated inhibition of proliferation and GFAP expression was well correlated with decreased Ras/ERK1/2 pathway activation. Furthermore, TNF␣-mediated astrocyte proliferation and GFAP expression was also inhibited by LY294002, a phosphatidylinositol 3-kinase inhibitor, which was reversed by exogenous LacCer. LY294002 also inhibited TNF␣-induced GalT-2 activation and LacCer synthesis, suggesting a phosphatidylinositol 3-kinase-mediated regulation of GalT-2. In vivo, PDMP treatment attenuated chronic ERK1/2 activation and spinal cord injury (SCI)-induced astrocyte proliferation with improved functional recovery post-SCI. Therefore, the in vivo studies support the conclusions drawn from cell culture studies and provide evidence for the role of LacCer in TNF␣-induced astrogliosis in a rat model of SCI. To our knowledge, this is the first report demonstrating the role of LacCer in the regulation of TNF␣-induced proliferation and reactivity of primary astrocytes.Traumatic injury to the adult central nervous system (CNS) 1 results in a rapid inflammatory response by the resident astrocytes, characterized mainly by hypertrophy, proliferation, and increased glial fibrillary acidic protein (GFAP) expression, resulting in astrogliosis (1-4). Tumor necrosis factor-␣ (TNF␣) has been identified as one of the first cytokines to appear following CNS injury and has been implicated in exacerbation of CNS injury. TNF␣ induces proliferation of both primary astrocytes (5, 6) and human astroglioma cell lines (7, 8) as well as GFAP overexpression (9). Although many reasons have been put forward to explain the obvious lack of CNS regeneration following injury/neurotrauma, the robust formation of the glial scar, as a result of astrogliosis, is also known to interfere with subsequent neural repair or axonal regeneration (2, 10). Thus, considerable effort is being directed toward understanding the mechanisms involved in astrocyte proliferation and reactivity in order to design therapeutic approaches to modulate gliosis, w...