Hyperosmolarity‐ and CD95 ligand (CD95L)‐induced interactions between CD95 (Fas/APO‐1) and the epidermal growth factor receptor (EGFR) involve EGFR‐catalyzed CD95 tyrosine phosphorylation. Such interactions were studied by means of fluorescence resonance energy transfer (FRET) and CD95 receptor mutagenesis in Huh7 hepatoma cells. In cells cotransfected with EGFR–cyan fluorescent protein and CD95–yellow fluorescent protein, FRET studies showed a rapid, hyperosmolarity‐induced, c‐Jun‐N‐terminal kinase–dependent CD95–EGFR association in the cytosol with subsequent microtubule‐dependent translocation of the protein complex to the plasma membrane. Inhibition of EGFR tyrosine kinase activity by AG1478 and cyclic adenosine monophosphate had no effect on hyperosmotic CD95–EGFR association in the cytosol but prevented CD95 tyrosine phosphorylation, targeting of the protein complex to the plasma membrane, and formation of the death‐inducing signaling complex (DISC). The requirement of EGFR‐mediated CD95 tyrosine phosphorylation for hyperosmotic and CD95L‐induced CD95 membrane targeting and DISC formation was also shown in CD95 mutagenesis experiments. CD95 mutants with tyrosine–phenylalanine exchanges at positions 232 and 291 failed to translocate to the plasma membrane and to recruit Fas‐associated death domain and caspase 8, although these mutants still associated with the EGFR in the cytosol in response to hyperosmolarity and CD95L. Cells transfected with these mutants were also resistant to CD95L‐induced apoptosis. Single mutations of tyrosine 91, 232, and 291 failed to inhibit CD95 membrane targeting, DISC formation, or CD95L‐induced apoptosis. In conclusion, we identify EGFR–CD95 interaction and phosphorylation of critical CD95 tyrosine residues as important early events in hyperosmotic and CD95L‐induced CD95 activation and apoptosis induction. Supplementary material for this article can be found on the HEPATOLOGYwebsite (http://interscience.wiley.com/jpages/0270‐9139/suppmat/index.html). (HEPATOLOGY 2005;41:315–326.)