cAMP has been found to play a role in mediating the negative regulation of cell motility, although its underlying molecular mechanism remains poorly understood. By using CHO (Chinesehamster ovary) cells that express the EP2 subtype of PGE 2 (prostaglandin E 2 ) receptors, we provide evidence that an increase in cellular cAMP content leads to inhibition of cellular Rac activity, which serves as a mechanism for this negative regulation. In CHO cells expressing EP2, but not in vector control cells, PGE 2 dose-dependently inhibited chemotaxis towards IGF-I (insulinlike growth factor-I), which is a Rac-dependent process, with the maximal 75 % inhibition observed at 10 −8 M PGE 2 . EP2 stimulation failed to inhibit tyrosine phosphorylation either of IGF-I receptor or IRS-1 (insulin receptor substrate-1), or activation of phosphoinositide 3-kinase or Akt in response to IGF-I, but potently and dose-dependently inhibited IGF-I-induced activation of cellular Rac activity and membrane ruffling. However, PGE 2 failed to inhibit Val 12 -Rac-induced membrane ruffling. Similar to the case of CHO cells, PGE 2 inhibited PDGF (platelet-derived growth factor)-induced Rac activation and chemotaxis in vascular smooth muscle cells endogenously expressing EP2. The inhibitory effects of PGE 2 on IGF-I-induced chemotaxis, membrane ruffling and Rac activation were faithfully reproduced by a low concentration of forskolin, which induced a comparable extent of cAMP elevation as with 10 −8 M PGE 2 , and were potentiated by isobutylmethylxanthine. The protein kinase A inhibitor Rp isomer of adenosine 3 ,5 -cyclic monophosphorothioate reduced PGE 2 inhibition of Rac activation and chemotaxis. These results indicate that EP2 mediates Rac inhibition through a mechanism involving cAMP and protein kinase A, thereby inhibiting membrane ruffling and chemotaxis.