Treatment of the rat pheochromocytoma cell line PC12 with nerve growth factor (NGF) or epidermal growth factor (EGF) is known to result in activation of Ras. In response to EGF treatment, complexes form between Sos, Grb2 and tyrosine phosphorylated Shc and/or EGF receptor. In response to NGF treatment, complexes form between Sos, Grb2 and tyrosine phosphorylated Shc. While Shc is also found bound to the activated NGF receptor, Trk, no complexes were detectable that contained both Trk and Grb2 or Sos. In streptolysin O permeabilised cells, a tyrosine phosphopeptide, EGFR-Y1068P, which binds to the SH2 domain of Grb2, totally blocks growth factor induced formation of complexes between Grb2 and Shc or EGF receptor, and also blocks activation of nucleotide exchange on Ras. At low concentrations, another tyrosine phosphopeptide, TRK-Y490P, which binds to the SH2 domain of Shc, blocks growth factor induced formation of complexes between Shc and the EGF receptor or Trk, but fails to block activation of nucleotide exchange on Ras. Higher concentrations of TRK-Y490P inhibit tyrosine phosphorylation of Shc and the formation of Shc complexes with Grb2: this results in strong inhibition of Ras activation by NGF and partial inhibition of Ras activation by EGF. These data demonstrate that the formation of a trimeric complex between tyrosine phosphorylated Shc, Grb2 and Sos is the key event in the activation of Ras in response to NGF. The binding of Sos to tyrosine phosphorylated receptor, via Grb2 may also contribute to Ras activation by EGF but not NGF, while stable complex formation between Shc and receptors is not necessary for Ras activation by either growth factor.