The role of lipid polymorphism in the regulation of membrane-associated protein function is examined, based on recent studies which showed that changes in the levels of phosphatidylethanolamine (PE), cholesterol and phospholipid unsaturation, modulate the activity of the key signal transduction enzyme, protein kinase C (PKC). It is shown that effects of membrane compositional changes on PKC activity involve a perturbation of protein-lipid interactions with the head group region rather than with the hydrophobic interior of the bilayer. A key determinant in the perturbation of these interactions is suggested to be an elastic curvature energy, termed curvature stress, which results from the unfavorable packing of non-lamellar forming lipids in a planar bilayer. PKC activity is shown to be a biphasic function of curvature stress, with an optimum value of this parameter corresponding to an optimally active PKC conformation. Thus, it is shown that the maximal activity of conformationally distinct PKC isoforms may require a different optimum value of curvature stress. Furthermore, it is hypothesized that curvature stress may have differing effects on the conformation of membrane-associated PKC activity induced by diacylglycerols, phorbol esters or other activators, based on recent studies showing that these agents induce the formation of disparate active conformers of the enzyme.