alpha-Cyclodextrin at concentrations of 1-8 mM helps dissolve, in aqueous solution, fatty acids such as lignoceric, stearic, and palmitic, and complex lipids such as ceramide and cerebroside that contain these acids. Formation of an inclusion complex was indicated on examination of the solution by gel filtration. alpha-Cyclodextrin strikingly increased synthesis of ceramide from sphingosine and either free lignoceric or stearic acid by rat brain preparations. These results suggest the further use of alpha-cyclodextrin in lipid enzymology, especially in relation to sphingolipid metabolism.