Escherichia coli envelopes were fractionated to yield inner and outer membrane fractions. Both these fractions were found to convert [14C]lysophosphatidylethanolamine to its diacyl analogue. Intact Escherichia coli cells were capable of absorbing exogenous labelled lysophosphatidylethanolamine and converting it to phosphatidylethanolamine. When the 14C- and 32P-labelled lyso analogue was used, both the absorption process and the conversion to diacyl analogue proceeded without a significant change in isotope ratio either in the presence or in the absence of added inorganic phosphate. The absorption process was not markedly stimulated by Ca2+ in the medium; it proceeded to an amount representing 25--30% of the endogenous membrane lipid and was accompanied by some degradation to water-soluble products which accumulated in the cell mainly, but also in the incubation medium. The absorbed lipid was recovered in both the inner and outer membrane fractions of the cell envelope. The results indicate that Escherichia coli inner and outer membranes are capable of absorbing exogenous lysophosphoglyceride and converting it into structurally useful diacyl analogue.