Efficient saltatory conductance of the action potential along axons requires their close interaction with wrapping glial cells. In vertebrates and invertebrates such as Drosophila the development of axon wrapping glial cells is based on receptor tyrosine kinase (RTK) signaling. Using Drosophila as a model, we identified a novel negative regulator of RTK activity, the NG2 homolog Kontiki (Kon). During glial development, kon is expressed in a subset of glial progenitor cells where it negatively regulates both RTK-mediated proliferation and cell migration. I already demonstrated that Kon is removed from late larval ensheathing glial cells, coinciding with a phase of proliferation. To decipher the function of kon I will first identify the downstream effectors of Kon and decipher the mechanism of Kon mediated negative regulation of RTK signaling. I will use live imaging with biosensors of ERK and small GTPases in S2 cells and imaginal discs. I will also determine the mechanisms responsible for the removal of Kon from the cell surface of late larval glial cells and test whether neuronal activity affects Kon activity/stability. The results obtained will provide us with a mechanistic understanding of the crosstalk between Kon and RTK signaling in glial development.