Upon binding of platelet-derived growth factor (PDGF), PDGF receptor is autophosphorylated at tyrosine residues in its cytoplasmic region, which induces the activation of diverse intracellular signaling pathways such those involving Ras-ERK, c-Src, and Rap1-Rac. Signaling through activated Ras-ERK promotes cell cycle and cell proliferation. The sequential activation of Rap1 and Rac affects cellular morphology and induces the formation of leading-edge structures, including lamellipodia, peripheral ruffles, and focal complexes, resulting in the enhancement of cell movement. In addition to the promotion of cell proliferation, the Ras-ERK signaling is involved in the regulation of cellular morphology. Here, we showed a novel role of afadin in the regulation of PDGF-induced intracellular signaling and cellular morphology in NIH3T3 cells. Afadin was originally identified as an actin filament-binding protein, which binds to a cell-cell adhesion molecule nectin and is involved in the formation of cell-cell junctions. When afadin was tyrosine-phosphorylated by c-Src activated in response to PDGF, afadin physically interacted with and increased the phosphatase activity of Src homology 2 domain-containing phosphatase-2 (SHP-2), a protein-tyrosine phosphatase that dephosphorylates PDGF receptor, leading to the prevention of hyperactivation of PDGF receptor and the Ras-ERK signaling. In contrast, knockdown of afadin or SHP-2 induced the hyperactivation of PDGF receptor and Ras-ERK signaling and consequently suppressed the formation of leading-edge structures. Thus, afadin plays a critical role in the proper regulation of the PDGF-induced activation of PDGF receptor and signaling by Ras-ERK. This effect, which is mediated by SHP-2, impacts cellular morphology.Afadin is a nectin-and actin filament (F-actin) 2 -binding protein that connects nectin to the actin cytoskeleton (1). Nectin is a Ca 2ϩ -independent immunoglobulin-like molecule that first forms cell-cell adhesion and then assembles cadherin at the nectin-based cell-cell adhesion sites, resulting in the formation of adherens junctions (AJs) in epithelial cells and fibroblasts (2, 3). The nectin family of proteins comprises four members, nectin-1, -2, -3, and -4. A series of our studies revealed the roles and modes of action of nectin and afadin for the formation of AJs (2-10). Nectin initiates the formation of cell-cell adhesion and then induces the activation of Rap1, Cdc42, and Rac small G proteins through the activation of c-Src. Subsequently, Cdc42 and Rac bind to IQGAP1 and induce the reorganization of the actin cytoskeleton, thereby causing the accumulation of nontrans-interacting E-cadherin at the nectin-based cell-cell adhesion sites. On the other hand, afadin, which binds to Rap1 activated by the action of nectin, associates with p120 ctn and inhibits the endocytosis of accumulated non-trans-interacting E-cadherin to facilitate the trans-interaction of E-cadherin. In parallel with these processes, Cdc42 increases the number of filopodia and cell-cell contact si...