Previous studies demonstrated that sphingosine-1-phosphate (S1P) phosphohydrolase 1 (SPP-1), which is located mainly in the endoplasmic reticulum (ER), regulates sphingolipid metabolism and apoptosis (H. Le Stunff et al., J. Cell Biol. 158:1039-1049, 2002). We show here that the treatment of SPP-1-overexpressing cells with S1P, but not with dihydro-S1P, increased all ceramide species, particularly the long-chain ceramides. This was not due to inhibition of ceramide metabolism to sphingomyelin or monohexosylceramides but rather to the inhibition of ER-to-Golgi trafficking, determined with the fluorescent ceramide analog N-(4,4-difluoro-5,7-dimethyl-4-bora-3a,4a-diaza-s-indacene-3-pentanoyl)-D-erythro-sphingosine (DMB-Cer). Fumonisin B1, an inhibitor of ceramide synthase, prevented S1P-induced elevation of all ceramide species and corrected the defect in ER transport of DMB-Cer, readily allowing its detection in the Golgi. In contrast, ceramide accumulation had no effect on either the trafficking or the metabolism of 6-([N-(7-nitrobenzo-2-oxa-1,3-diazol-4-yl)amino] hexanoyl)-sphingosine, which rapidly labels the Golgi even at 4°C. Protein trafficking from the ER to the Golgi, determined with vesicular stomatitis virus ts045 G protein fused to green fluorescent protein, was also inhibited in SPP-1-overexpressing cells in the presence of S1P but not in the presence of dihydro-S1P. Our results suggest that SPP-1 regulates ceramide levels in the ER and thus influences the anterograde membrane transport of both ceramide and proteins from the ER to the Golgi apparatus.All sphingolipids contain ceramide, which consists of a sphingoid base, typically sphingosine or dihydrosphingosine, and an amide linked acyl chain. Ceramide, a bioactive molecule (39), can be deacylated to sphingosine, which in turn can be phosphorylated to sphingosine-1-phosphate (S1P), also a potent lipid mediator that regulates vital biological processes (56). S1P is the ligand of a family of specific cell surface G protein-coupled receptors, hereafter referred to as S1PRs. These receptors couple to various G proteins to regulate cell migration, angiogenesis, vascular maturation, heart development, neurite retraction, and lymphocyte trafficking and immune responses (reviewed in references 49, 53, and 56). Dihydrosphingosine-1-phosphate (dihydro-S1P), which is identical to S1P but lacks the trans 4,5 double bond, binds to all of the S1PRs and activates them and yet does not mimic all of the effects of S1P, especially those related to cell survival and protection against apoptosis (56). Hence, S1P might also have intracellular functions independent of S1PRs. Indeed, S1P also regulates important functions in yeast and plant cells that lack S1PRs (reviewed in references 53 and 56).In contrast to S1P, ceramide, a central molecule in sphingolipid metabolism, has been implicated in cell growth arrest, differentiation, and apoptosis (10,22,39). Abundant evidence indicates that the balance between ceramide and S1P is a critical factor that determines cell fate ...