Sphingolipids are important signalling molecules and thus it is very important to understand how they are generated. Sphingolipid biosynthesis shows a conserved compartmentalization in eukaryotic cells. Their synthesis begins in the endoplasmic reticulum and is completed in the Golgi apparatus. We now know quite a bit about the topology of the reactions in the pathway, but certain critical steps, such as ceramide synthesis, are still poorly understood. In the present paper, we discuss the latest views on this subject.