Phospholipase A 2 (PLA 2 )-activating protein (PLAA) is a novel signaling molecule that regulates the production of prostaglandins (PGE 2 ) and tumor necrosis factor (TNF)-α. To characterize the function of native PLAA in situ, we generated HeLa (Tet-off) cells overexpressing plaa (plaa high ) and control (plaa low ) cells, with the plaa gene in opposite orientation in the latter construct. The plaa high cells produced significantly more PGE 2 and interleukin (IL)-6 compared to plaa low cells in response to TNF-α. There was increased activation and/or expression of cytosolic PLA 2 , cyclooxgenase-2, and NF-κB after induction of plaa high cells with TNF-α compared to the respective plaa low cells. Microarray analysis of plaa high cells followed by functional assays revealed increased production of proinflammatory cytokine IL-32 and a decrease in the production of annexin A4 and clusterin compared to plaa low cells. We demonstrated the role of annexin A4 as an inhibitor of PLA 2 and showed that addition of exogeneous clusterin limited the production of PGE 2 from plaa high cells. To understand regulation of plaa gene expression, we used a luciferase reporter system in HeLa cells and identified one stimulatory element, with Sp1 binding sites, and one inhibitory element, in exon 1 of the plaa gene. By using decoy DNA oligonucleotides to Sp1 and competitive binding assays, we showed that Sp1 maintains basal expression of the plaa gene and binds to the above-mentioned stimulatory element. We demonstrated for the first time that the induction of native PLAA by TNF-α can perpetuate inflammation by enhancing activation of PLA 2 and NF-κB.