Small unilamellar vesicles have been prepared from phosphatidylethanolamine by sonication of the lipid in aqueous buffers of low ionic strength and high pH. These vesicles and their interactions with various di- and trivalent cations have been characterized using freeze-fracture electron microscopy. Phosphatidylethanolamine from 4 sources was examined: Hens' yolk phosphatidylethanolamine, human grey matter phosphatidylethanolamine, Escherichia coli phosphatidylethanolamine and dimyristoyl phosphatidylethanolamine. The phosphatidylethanolamine from natural sources formed spherical, uniform 20–40 nm vesicles while dimyristoyl phosphatidylethanolamine formed larger, 70 × 25 nm, disc-shaped vesicles when sonicated above the phase transition temperature. Fusion of the unilamellar egg phosphatidylethanolamine, E. coli phosphatidylethanolamine and human grey matter phosphatidylethanolamine vesicles was induced by dialysis against buffers containing 2.0 nM Ca+ or 3.0 mM Mg2+. The fusion of the vesicles resulted in the precipitation of the lipid and the formation of multilamellar and, in some cases, hexagonal II structures. Dimyristoyl phosphatidylethanolamine vesicles were precipitated at 55°C by 1.0 mM Ca+ or 2.0 mM Mg2+. Treatment of the calcium- and magnesium-precipitated vesicles of hen's egg yolk phosphatidylethanolamine, E. coli phosphatidylethanolamine, human grey matter phosphatidylethanolamine and dimyristoyl phosphatidylethanolamine with EDTA resulted in resuspension of the lipid. The specific size and shape of the vesicles formed in this manner depends on the type of phosphatidylethanolamine and ion involved. Dialysis of the Ca+- and Mg2+-precipitated egg phosphatidylethanolamine vesicles against buffer containing no Ca+, Mg2+ or EDTA also resulted in dissociation of the precipitate and formation again of a new vesicle population. This evidence indicates that the Ca+ and Mg2+ are not strongly bound to the phosphatidylethanolamine. Egg phosphatidylethanolamine vesicles would fuse in the presence of many di- and trivalent ions. Egg phosphatidylethanolamine vesicles were precipitated by beryllium, aluminum, chromium, manganese, cobalt, nickel, copper, zinc, strontium, cadmium, barium, lanthanium, mercury and lead. The amount of ion required to precipitate the vesicles and the type of structure resulting from the fusion of the vesicles was found to be unique for each ion. Small unilamellar vesicles prepared from egg phosphatidylethanolamine were reacted with several basic proteins (cytochrome c, basic protein from human myelin, protamine, poly-l-lysine and cationically-modified ferritin). The basic proteins also initiated the fusion of egg phosphatidylethanolamine vesicles but these proteins did not fuse egg phosphatidylcholine vesicles nor did normal ferritin initiate fusion. Human myelin basic protein initiated the fusion of dimyristoyl phosphatidylethanolamine vesicles above and below the phase transition of this lipid.