Deformation of vacuolar membranes mediated by endosomal sorting complex required for transport (ESCRT) is necessary for microautophagy. Target of rapamycin complex 1 (TORC1) protein kinase negatively regulates ESCRT-0 (Vps27-Hse1) recruitment onto vacuolar membranes and microautophagy induction. However, whether and how protein phosphatase regulates these events is unknown. Here, we show that the TORC1-downstream protein phosphatase PP2A-Cdc55 is important for these events after TORC1 inactivation in budding yeast. Loss of PP2A-Cdc55 compromised vacuolar localization of Hse1, but not Vps27. This study revealed that the orchestrated action of PP2A induces microautophagy upon TORC1 inactivation. (C) 2020 Elsevier Inc. All rights reserved.