▪ Abstract Genetic and biochemical studies in yeast and animal cells have led to the identification of many components required for endocytosis. In this review, we summarize our understanding of the endocytic machinery with an emphasis on the proteins regulating the internalization step of endocytosis and endosome fusion. Even though the overall endocytic machinery appears to be conserved between yeast and animals, clear differences exist. We also discuss the roles of phosphoinositides, sterols, and sphingolipid precursors in endocytosis, because in addition to proteins, these lipids have emerged as important determinants in the spatial and most likely temporal specificity of endocytic membrane trafficking events.