Cytosolic phospholipase A 2 (cPLA 2 ) plays a key role in the generation of arachidonic acid, a precursor of potent inflammatory mediators. Intact cPLA 2 is known to translocate in a calcium-dependent manner from the cytosol to the nuclear envelope and endoplasmic reticulum. We show here that the C2 domain of cPLA 2 alone is sufficient for this calcium-dependent translocation in living cells. We have identified sets of exposed hydrophobic residues in loops known as calcium-binding region (CBR) 1 and CBR3, which surround the C2 domain calcium-binding sites, whose mutation dramatically decreased phospholipid binding in vitro without significantly affecting calcium binding. Mutation of a residue that binds calcium ions (D43N) also eliminated phospholipid binding. The same mutations that prevent phospholipid binding of the isolated C2 domain in vitro abolished the calcium-dependent translocation of cPLA 2 to internal membranes in vivo, suggesting that the membrane targeting is driven largely by direct interactions with the phospholipid bilayer. Using fluorescence quenching by spin-labeled phospholipids for a series of mutants containing a single tryptophan residue at various positions in the cPLA 2 C2 domain, we show that two of the calcium-binding loops, CBR1 and CBR3, penetrate in a calcium-dependent manner into the hydrophobic core of the phospholipid bilayer, establishing an anchor for docking the domain onto the membrane.Cytosolic phospholipase A 2 (cPLA 2 ) 1 is an 85-kDa protein that hydrolyzes phospholipids containing arachidonate at the sn-2 position (Refs. 1 and 2; reviewed in Refs. 3-6). This enzyme has no sequence homology to any other phospholipase A 2 and is capable of functioning in receptor-regulated, agonistinduced arachidonic acid release (7,8). Recent work with mice lacking a gene for cPLA 2 has demonstrated that cPLA 2 has a critical, nonredundant role in the production of eicosanoids and platelet-activating factor in the process of inflammation, anaphylaxis, and reproduction (9, 10). The activity of cPLA 2 is regulated by calcium; however, the role of calcium is to promote membrane binding rather than participating in catalysis directly. An increase in intracellular calcium triggered by calcium ionophores or agonists such as histamine or IgE/antigen causes the translocation of cPLA 2 from the cytosol to the nuclear membrane and endoplasmic reticulum (11)(12)(13)(14), where it co-localizes with other enzymes involved in eicosanoid metabolism, such as prostaglandin-endoperoxide synthase-1 and -2, 5-lipoxygenase, and 5-lipoxygenase-activating protein (11, 15). The activity of cPLA 2 is also regulated via phosphorylation of the enzyme, and for at least some agonists, phosphorylation of cPLA 2 is a requisite step in its activation (4, 5). Detailed studies of the role of calcium and phosphorylation in arachidonic acid release have shown that a sustained increase in intracellular calcium is sufficient to induce arachidonic acid release, whereas either sustained phosphorylation of cPLA 2 or a transient ...