We have utilized cell surface biotinylation assays to study protein targeting signals and pathways in polarized epithelial cells. These studies have revealed that in MDCK cells, most proteins are sorted intracellularly and are targeted directly to the surface; in other cell types, protein targeting may be mediated by a selective retrieval event. Studies on both intact and permeabilized cells demonstrate that microtubules facilitate apical but not basolateral delivery. Recent transfection studies in MDCK cells have identified glycosyl phosphatidyl inositol (GPI) as an apical targeting signal; interaction of the GPI moiety with glycolipids preferentially expressed on the apical surface may mediate this process. Several proteinaceous basolateral targeting signals have also been recently described.