Numb, an evolutionarily conserved cell fate-determining factor, plays a pivotal role in the development of Drosophila and vertebrate nervous systems. Despite lacking a transmembrane segment, Numb is associated with the cell membrane during the asymmetric cell division of Drosophila neural precursor cells and is selectively partitioned to one of the two progeny cells from a binary cell division. Numb contains an N-terminal phosphotyrosine-binding (PTB) domain that is essential for both the asymmetric localization and the fate specification function of Numb. We report here the isolation and characterization of a novel PTB domain-binding protein, NIP (Numb-interacting protein). NIP is a multipass transmembrane protein that contains two PTB domainbinding, NXXF motifs required for the interaction with Numb. In dividing Drosophila neuroblasts, NIP is colocalized to the cell membrane with Numb in a basal cortical crescent. Expression of NIP in Cos-7 cells recruited Numb from the cytosol to the plasma membrane. This recruitment of Numb to membrane by NIP was dependent on the presence of at least one NXXF site. In Drosophila Schneider 2 cells, NIP and Numb were colocalized at the plasma membrane. Inhibition of NIP expression by RNA interference released Numb to the cytosol. These results suggest that a direct protein-protein interaction between NIP and Numb is necessary and sufficient for the recruitment of Numb to the plasma membrane. Recruitment of Numb to a basal cortical crescent in a dividing neuroblast is essential for Numb to function as an intrinsic cell fate determinant.Asymmetric cell division, which can involve extrinsic and/or intrinsic factors, is a fundamental mechanism of generating cell diversity during the development of complex organisms (1, 2). Extrinsic factors such as Delta and its receptor Notch (3, 4) function in cell-cell communication to specify the fate of cells (5-7). Asymmetric determinants are intrinsic factors that are selectively segregated into one of the two daughter cells when a cell divides (2,8). Consequently, the sibling cell that inherits the asymmetric determinants adopts a different fate from the one that does not. Numb is a member of a growing family of proteins that also includes Prospero, Miranda, Inscuteable, and PON (partner of numb) (9 -14), which act as intrinsic determinants in asymmetric cell division. These proteins were identified through their requirement in the development of Drosophila peripheral and central nervous systems. The external sensory organ in Drosophila is composed of two outer (hair and socket) cells and three inner (sheath, glial, and neuron) cells, which are derived from a single sensory organ precursor through three consecutive asymmetric cell divisions. Numb is selectively partitioned to one of the two daughter cells at each binary division (15). Numb is also required for the development of the central nervous system (16 -18). During delaminating from the neuroectoderm and asymmetric division of a neuroblast, Numb, Prospero, and several other proteins...