The interaction of cell surface components may influence several events during the process of transmembrane signalling. Receptor clustering, conformational changes and altered molecular interactions often play essential roles in the final outcome of ligand receptor interactions. Fluorescence resonance energy transfer (FRET) is an excellent tool which can be used to determine distance relationships and supramolecular structure on cell surfaces. This paper reviews the theoretical basis of fluorescence resonance energy transfer, its spectrofluorometric and flow cytometric applications, and provides a critical evaluation of the methods. Finally, examples are given to illustrate the use of the method of fluorescence resonance energy transfer in solving biological problems.