Sphingolipids are ubiquitous components of eukaryotic cells that regulate various cellular functions. In many cell types, a fraction of sphingolipids contain 2-hydroxy fatty acids, produced by fatty acid 2-hydroxylase (FA2H), as the N-acyl chain of ceramide [hydroxyl fatty acid (hFA)-sphingolipids]. FA2H is highly expressed in myelin-forming cells of the nervous system and in epidermal keratinocytes. While hFA-sphingolipids are thought to enhance the physical stability of specialized membranes produced by these cells, physiological significance of hFA-sphingolipids in many other cell types is unknown. In this study, we report novel roles for FA2H and hFA-sphingolipids in the regulation of the cell cycle. Treatment of D6P2T Schwannoma cells with dibutyrylcAMP (db-cAMP) induced exit from the cell cycle with concomitant upregulation of FA2H. Partial silencing of FA2H in D6P2T cells resulted in 60-70% reduction of hFA-dihydroceramide and hFA-ceramide, with no effect on nonhydroxy dihydroceramide and ceramide. Under these conditions, db-cAMP no longer induced cell cycle exit, and cells continued to grow and divide. Immunoblot analyses revealed that FA2H silencing prevented db-cAMP-induced upregulation of cyclin-dependent kinase inhibitors p21 and p27. These results provide evidence that FA2H is a negative regulator of the cell cycle and facilitates db-cAMP-induced cell cycle exit in D6P2T cells. Sphingolipids are a diverse group of lipids found in all eukaryotic cells. They are major structural components of cell membranes and involved in various cellular functions, such as cell adhesion, signaling, and membrane trafficking (1-3). The structural diversity of sphingolipids arises from .300 distinct carbohydrate head groups as well as modifications on the sphingoid base and the N-acyl chains of ceramide. The sphingoid base in mammalian sphingolipids is predominantly C 18 sphingosine, whereas the N-acyl chains are highly diverse with varying chain length (C 12 -C 34 ), desaturation, and hydroxylation. In mammals, sphingolipids containing 2-hydroxy fatty acids (hFA-sphingolipids) are present at high concentrations in the nervous system, comprising the major myelin lipids galactosylceramide and sulfatide (4). A number of nonneural tissues also contain various hFA-sphingolipids. Examples include hFA-ceramide in the epidermis (5); hFA-sphingomyelin in kidney, intestine, spermatozoa (6-8); and various hFA-glycosphingolipids in liver and intestine (9-12). In addition, aberrant hFAglycosphingolipids are present in various human tumors, including ovarian tumors (13), neuroblastomas (14), small cell lung carcinomas (15), and colon and liver adenocarcinomas (16,17). In some studies, a correlation was reported to exist between hFA-sphingolipid levels and the invasive or drug-resistant nature of tumor cells (18,19). Despite the welldocumented prevalence of hFA-sphingolipids, their specific cellular functions are unknown.The fatty acid 2-hydroxylase FA2H catalyzes the formation of precursors for hFA-sphingolipids, 2-hydroxy...