On phosphorylation of Cbl, the c-Cbl-associated protein (CAP)͞Cbl complex dissociates from the insulin receptor and translocates to a lipid raft membrane fraction to form a ternary complex with flotillin. Deletion analyses of the CAP gene identified a 115-aa region responsible for flotillin binding. This region is homologous to the peptide sorbin and is referred to as the sorbin homology (SoHo) domain. This domain is present in two other proteins, vinexin and ArgBP2. Vinexin also interacted with flotillin, and deletion of its SoHo domain similarly blocked flotillin binding. The overexpression of a CAP mutant in which the SoHo domain had been deleted (CAP⌬SoHo) prevented the translocation of Cbl to lipid rafts and subsequently blocked the recruitment of CrkII and C3G. Moreover, overexpression of CAP⌬SoHo prevented the stimulation of glucose transport and GLUT4 translocation by insulin. These results suggest a mechanism for localization of signaling proteins to the lipid raft that mediates the compartmentalization of crucial signal transduction pathways.L ipid rafts are microdomains of the plasma membrane enriched in cholesterol and sphingolipids (1, 2). These regions concentrate certain signaling molecules (3, 4), including heterotrimeric and small G proteins (5-7), Src-family tyrosine kinases (8, 9), endothelial nitric oxide synthase (10, 11), G-proteincoupled receptors (12), and certain tyrosine kinase receptors (13). This concentration of signaling molecules suggests that these microdomains might function as a site for compartmentalization of signaling events. We observed that insulin stimulated the tyrosine phosphorylation of c-Cbl (14) and its subsequent translocation to a caveolin-enriched, lipid raft membrane fraction (15, 16). The c-Cbl-associated protein (CAP)͞Cbl complex interacts with the insulin receptor and dissociates after insulin stimulation, subsequently migrating to rafts because of the interaction of CAP with the lipid raft-associated protein flotillin (17)(18)(19). Moreover, the localization of the Cbl͞CAP complex to this microdomain recruits the guanyl nucleotide exchange protein C3G, resulting in the activation of the G protein TC10. This activation of TC10 generates a PI 3-kinaseindependent signal that is crucial to the regulation of glucose uptake by insulin (20,21).CAP is a multifunctional adapter protein with three SH3 domains in its C terminus and a region of homology to the gut peptide sorbin in its N terminus. The overall sorbin homology (SoHo)͞SH3 organization of CAP is also found in other proteins, including vinexin␣ and ArgBP2A. The similar organization of these proteins suggests that they may similarly function as adapters, linking signaling or cytoskeletal proteins to the lipid raft. We demonstrate here that the SoHo domain does indeed mediate the interaction of CAP and vinexin with flotillin. Moreover, this interaction is crucial for the localization of SH3-binding proteins such as Cbl to the lipid raft and propagation of the downstream signal. These data suggest a signaling par...