Proteins that terminate with a consensus sequence known as CAAX undergo a series of posttranslational modifications that include polyisoprenylation, endoproteolysis, and carboxyl methylation. These modifications render otherwise hydrophilic proteins hydrophobic at their C termini such that they associate with membranes. Whereas prenylation occurs in the cytosol, postprenylation processing is accomplished on the cytoplasmic surface of the endoplasmic reticulum and Golgi apparatus. Among the numerous CAAX proteins encoded in mammalian genomes are many signaling molecules such as monomeric GTPases, including the Ras proteins that play an important role in cancer. In the course of their processing, nascent Ras proteins traffic from their site of synthesis in the cytosol to the endomembrane and then out to the plasma membrane (PM) by at least two pathways. Recently, retrograde pathways have been discovered that deliver mature Ras from the PM back to the Golgi. The Golgi has been identified as a platform upon which Ras can signal. Thus, the subcellular trafficking of Ras proteins has the potential to increase the complexity of Ras signaling by adding a spatial dimension. The complexity of Ras trafficking also affords a wider array of potential targets for the discovery of drugs that might inhibit tumors by interfering with Ras trafficking.-Wright, L. P., and M. R. Philips. CAAX modification and membrane targeting of Ras. J. Lipid Res. 2006. 47: 883-891. Supplementary key words farnesylation . trafficking . carboxyl methylation Ras proteins have been studied intensively for more than a quarter century because of their role in human cancer. Indeed, Ras was one of the first oncogenes to be identified. At the biochemical level, Ras is the founding member of a large superfamily of monomeric GTPases that function as molecular switches. Ras is also the founding member of a class of peripheral membrane proteins known as CAAX proteins, where C stands for cysteine, A for an aliphatic amino acid, and X for any amino acid. The primary translation product of CAAX protein genes end with a CAAX sequence that serves as a substrate for three enzymes that sequentially modify the sequence to create a lipidated, hydrophobic domain that mediates the association with cellular membranes. These enzymes include two prenyltransferases, farnesyltransferase (FTase) and geranylgeranyltransferase (GGTase), Ras-converting enzyme 1 (Rce1), and isoprenylcysteine carboxyl methyltransferase (Icmt). Plasma membrane (PM) association of Ras was originally understood as the simple and direct consequence of CAAX processing by these enzymes. We now understand that CAAX modification is a highly orchestrated process that takes proteins on a journey through various subcellular compartments and can terminate on compartments other than the PM. An in-depth look at prenyltransferases, the first and best understood of the CAAX processing enzymes, was the focus of the review by Beese in this series (1), and Basso, Kirschmeier, and Bishop (2) described ef...