HIV, as well as many enveloped viruses, exits the cells by budding directly from the plasma membrane. HIV budding is dependent on a PTAP motif, which is located within the p6 domain of Gag. Recent studies have shown that the cellular protein Tsg101 binds to the PTAP L-domain motif of HIV p6 and facilitates the final stages of virus release. Tsg101 function in the cellular vacuolar protein sorting pathway, where they play central roles in selecting cargo for incorporation into vesicles that bud into the maturing endosome to create multivesicular bodies (MVBs). Vesicle budding into the MVB and viral budding at the plasma membrane are topologically equivalent, and the same machinery could catalyze both processes. It will be important to understand the mechanism of virus budding in detail, since virus budding may be a potential target for interference with HIV propagation.