To study intramitochondrial phospholipid flow, radiolabeled phosphatidylserine was introduced into isolated rat liver mitochondria from donor vesicles through the action of a nonspecific lipid transfer protein. Imported phosphatidylserine was rapidly decarboxylated to phosphatidylethanolamine. Both the imported phosphatidylserine and the formed phosphatidylethanolamine were confined to the outer membrane. The enzyme phosphatidylserine decarboxylase was shown to be located exclusively in the inner membrane. It was not enriched in isolated contact site fractions. 1,4-Dinitrophenol caused an inhibition of the decarboxylation of phosphatidylserine. This inhibition was not due to the uncoupling of the oxidative phosphorylation itself, but possibly due to a decrease in the number of contact sites. This suggests that phosphatidylserine flows from the outer membrane to the inner membrane through contact sites between inner and outer membrane to become decarboxylated and that the formed phosphatidylethanolamine flows directly back to the outer membrane, without mixing with inner membrane phosphatidylethanolamine.