  We define prequantization for Dirac manifolds to generalize known procedures
for Poisson and (pre) symplectic manifolds by using characteristic
distributions obtained from 2-cocycles associated to Dirac structures. Given a
Dirac manifold $(M,D)$, we construct Poisson structure on the space of
admissible functions on $(M,D)$ and a representation of the Poisson algebra to
establish the prequantization condition of $(M,D)$ in terms of a Lie algebroid
cohomology. Additional to this, we introduce a polarization for a Dirac
manifold $M$ and discuss procedures for quantization in two cases where $M$ is
compact and where $M$ is not compact.
