The fate of free cholesterol released after endocytosis of low-density lipo
proteins remains obscure. Here we report that late endosomes have a pivotal
role in intracellular cholesterol transport. We find that in the genetic d
isease Niemann-Pick type C (NPC), and in drug-treated cells that mimic NPC,
cholesterol accumulates in late endosomes and sorting of the lysosomal enz
yme receptor is impaired. Our results show that the characteristic network
of lysobisphosphatidic acid-rich membranes contained within multivesicular
late endosomes regulates cholesterol transport, presumably by acting as a c
ollection and distribution device. The results also suggest that similar en
dosomal defects accompany the anti-phospholipid syndrome and NPC.