Phospholipid 1-palmitoyl-2-oleoyl-sn-glycero-3-phosphocholine (POPC) nanodomains covered with bound water as well as diacylglycerol 1-palmitoyl-2-oleoyl-sn-glycerol (POG) nanodomains separated from a lipid membrane were studied, using monolayer surfaces of POPC hydrolyzed by phospholipase C (PLC). The investigation was based on the analysis of compression isotherms and on atomic force microscope (AFM) observations of Langmuir-Blodgett (LB) films and Langmuir-Schaefer (LS) films. The results included reaction rate constants obtained by kinetic analysis of phosphocholine at surface pressures from 0.1 to 31 mN/m and determined by a luminol-enhanced chemiluminescence method. Monolayer elastic modulus values and fluorescence microscopic images confirmed that hydrolysis by PLC progressed in the intermediate monolayer between a liquid-expanded (L1) film and a liquid-condensed (L2) film at 2-17 mN/m. Furthermore, the intermediate film was confirmed to consist of L1 film and the POPC nanodomains in the L2 state are covered with bound water, conclusions based on the following AFM results: (1) nanodomains in POPC LS films were catalyzed by PLC, (2) POG nanodomains extended out from LB films of mixed POPC/POG 9/1 (mol/mol) monolayers, and (3) POPC LS films were covered with bound water, as indicated by cross-sectional analysis. At the optimal surface pressure of 10 mN/m, when POPC nanodomains (L2), with internal diameters of ∼75 nm, were hydrolyzed by PLC, they shrank down into pockets of the same size as those that appeared with POG. The resulting pocket sizes on LS films were in agreement with POG nanodomain sizes on LB films. This study demonstrated that PLC reacted with POPC nanodomains (L2) dispersed in L1/L2 mixed phase monolayers selectively and that POG nanodomains were phase-separated from the monolayer as hydrolysis proceeded.