Virus particle formation of HIV-1 is a multistep process driven by a viral structural protein, Gag. This process takes place at the plasma membrane in most cell types. However, the pathway that directs Gag to the plasma membrane has recently come under intense scrutiny owing to its importance in the production of progeny virions, as well as virus transmission at cell-cell contacts, This article highlights recent advances in our current understanding of mechanisms that traffic and localize Gag to the plasma membrane. In addition, findings on Gag association with specific plasma membrane domains are discussed in light of potential roles in cell-cell transmission.