HIV-1 enters the CNS soon after peripheral infection and causes chronic neuroinflammation and neuronal damage that leads to cognitive impairment in 40-70% of HIV infected people. The non-pathogenic cellular isoform of the human prion protein (PrPc) is an adhesion molecule constitutively expressed in the CNS. Previously, our laboratory showed that shed PrPc (sPrPc) is increased in the CSF of HIV infected people with cognitive deficits as compared to infected people with no impairment. Here we demonstrate that CCL2 and TNF-α, inflammatory mediators that are elevated in the CNS of HIV infected people, increase shedding of PrPc from human astrocytes by increasing the active form of the metalloprotease ADAM10. We show that the consequence of this shedding can be the production of inflammatory mediators, as treatment of astrocytes with recombinant PrPc (recPrPc) increased secretion of CCL2, CXCL-12, and IL-8. Supernatants from recPrPc treated astrocytes containing factors produced in response to this treatment, but not recPrPc by itself, cause increased chemotaxis of both uninfected and HIV infected human monocytes, suggesting a role for sPrPc in monocyte recruitment into the brain. Furthermore, we examined whether PrPc participates in glutamate uptake, and found that recPrPc decreased uptake of this metabolite in astrocytes, that could lead to neurotoxicity and neuronal loss. Collectively, our data characterize mediators involved in PrPc shedding, and the effect of this sPrPc on monocyte chemotaxis and glutamate uptake from astrocytes. We propose that shedding of PrPc could be a potential target for therapeutics to limit the cognitive impairment characteristic of neuroAIDS.