O-Acetylation of the 9-hydroxyl group of sialic acids has been suggested to modify various recognition phenomena involving these molecules, but direct proof has been lacking in most situations. In the accompanying paper (Shi, W.-X., Chammas, R., and Varki, A. (1996) J. Biol. Chem. 261, 31517-31525), we report that the extent of 9-O-acetylation of cell surface sialic acids on murine erythroleukemia (MEL) cells can be modified by various manipulations, including differentiation, nocodazole treatment, and 9-O-acetyl esterase treatment. We have used this system to explore the putative roles of 9-O-acetylation in modulating alternative pathway complement activation, I-type lectin binding, and tissue homing. MEL cells are shown to be sensitive to lysis in vitro by the alternative pathway of human complement. Induced differentiation of the MEL cells causes resistance to lysis, and this correlates directly with extent of decrease in 9-O-acetylation. A similar resistance to alternative pathway lysis can be obtained by selective enzymatic removal of 9-O-acetyl groups from sialic acids. Conversely, the increase in cell surface 9-O-acetylation caused by nocodazole treatment correlates with increased sensitivity to alternative pathway lysis. Thus, a 9-O-acetyl group added to the side chain of cell surface sialic acids may abrogate its normal function in restricting alternative pathway activation. Indeed, the binding of human complement factor H, a negative regulator of the alternative pathway, is shown to be blocked by O-acetylation of the sialic acids on MEL cells. MEL cells are also shown to have cell surface ligands for the I-type lectins sialoadhesin and CD22. Sialoadhesin (but not CD22) binding is selectively enhanced by differentiation-induced loss of cell surface 9-O-acetylation and by direct enzymatic removal of the ester groups. Thus, some sialoadhesin ligands are masked by 9-O-acetylation, presumably because the side chain is required for recognition. Since sialoadhesin is expressed on some macrophages in vivo, we reasoned that tissue homing of MEL cells might be affected by O-acetylation. Indeed, enzymatic removal of cell surface 9-O-acetyl groups alters the tissue distribution of intravenously injected cells. In particular, de-O-acetylation caused significant increase in homing to the liver and spleen. These data demonstrate that cell surface 9-O-acetylation can affect a variety of biological recognition phenomena and provide a system for further exploration of the specific molecular mechanisms involved.