Prostaglandin (PG)s D2 and E2 are the major arachidonic acid metabolites in the mammalian brain. PGD synthase, the enzyme that produces PGD2 in the brain, is mainly localized in the arachnoid membrane and choroid plexus. It is secreted into the cerebrospinal fluid and circulates in the brain through the ventricular system. PGD2 induces sleep by acting on the surface of the ventro-medial region of the rostral basal forebrain, the signal of which is probably transmitted into the brain parenchyma by adenosine via adenosine A2a receptors. Fos expression experiments suggest that PGD2 inhibits histaminergic arousal neurons of the tuberomammillary nucleus (TMN) in the posterior hypothalamus by activating inhibitory neurons in the ventrolateral preoptic area (VLPO). However, PGE2 causes wakefulness by activating arousal neurons in the TMN via AMPA type excitatory amino acid receptors. Therefore, PGD2, acting as a sleep-inducer, and PGE2, acting as a wakefulness-promoter, jointly regulate the generation of sleep and wakefulness in the mammalian brain.