We have reported previously that interleukin-1 and tumor necrosis factor (TNF)-␣ increase expression and function of adenosine A 2A receptors (A 2A Rs), although the increased function is disproportionate to the increment in expression. We therefore studied the effect of TNF-␣ on A 2A R function and desensitization in human monocytoid THP-1 cells. We observed that TNF-␣ regulates activity of A 2A Rs and other G protein-coupled receptors (GPCRs) by altering their ligand-mediated desensitization. Pretreatment of resting cells with the A 2A R agonist 2-[p-(2-carboxyethyl)phenethylamino]-5Ј-N-ethylcarboxamidoadenosine (CGS 21680) or the pan-adenosine receptor agonist 5Ј-N-ethylcarboxamidoadenosine quickly desensitized cAMP responses to CGS 21680 restimulation, but TNF-␣ treatment prevented A 2A R desensitization. As expected, A 2A R occupancy induced translocation of GPCR kinase-2 (GRK2) to the plasma membrane (PM). We were surprised to find that after TNF-␣ treatment, A 2A R occupancy not only failed to induce GRK2 translocation to PM but also decreased GRK2 association with PM. TNF-␣ altered GRK2 translocation in response to the -adrenergic receptor agonist isoproterenol in a similar manner. Similar to GRK2, -arrestin associated with PM after A 2A R stimulation in control cells but not in TNF-␣-treated cells. C 2 -ceramide, a downstream mediator in the sphingomyelinase (SMase)-dependent pathway, mimicked the effect of TNF-␣ on GRK2 translocation. Moreover, inhibitors of the SMases and an inhibitor of c-Jun NH 2 -terminal kinase, also a downstream effector in the SMase pathway, reversed TNF-␣-mediated effects on GRK2 translocation and A 2A R desensitization. These results suggest a novel form of cross-talk between TNF-␣ receptors and GPCRs; TNF-␣ enhances GPCR function by preventing agonist-induced desensitization of GPCRs by diminishing agonist-dependent recruitment of GRK2 and -arrestin to PM by a SMase pathway-mediated mechanism.