Prom1 binds cholesterol in cholesterol-containing plasma membrane microdomains. It is rroposed to play a role in apical plasma membrane organization of epithelial cells. During early during retinal development, Prom1 acts as a key regulator of disk morphogenesis. Prom1 is involved in regulation of MAPK and Akt signaling pathways. In neuroblastoma cells suppresses cell differentiation such as neurite outgrowth in a RET-dependent manner.