We have shown recently that alteration of the membrane fluidity of either effector or target cells results in significant and selective inhibition of NK cell-mediated cytotoxicity (NK CMC). However, the localization of the defective stage in the NK lytic pathway is not known. In the present study, we show that rigidification of the NK-sensitive U937 target cell membrane by lipid modulation reduces its sensitivity to lysis by NK cytotoxic factor (NKCF). This resistance was not due to loss of NKCF binding sites on the target cell because target cells with rigid membranes absorbed more NKCF than control cells. The enhanced ability to absorb NKCF by membrane modification was supported by data showing that NK-resistant Raji cells lacking NKCF-binding sites absorb NKCF after lipid modification. Furthermore, consistent with the lipophilic nature of NKCF, synthetic lipid vesicles absorb NKCF. In contrast to membrane rigidification, membrane fluidization of the target cell did not change the target cell properties. Rigidification of the NK effector cell membrane abrogates it ability to secrete active NKCF when stimulated by target cells or by mitogens. Membrane fluidization of the NK effector cells did not inhibit their ability to release NKCF. The results of these studies demonstrate that inhibition of NK CMC by rigidification of the target cell membrane results in cells that are inhibited in processing bound NKCF to lysis. Inhibition of NK CMC by rigidification of the NK effector cell results in defective trigger for activation of the NKCF release mechanism.