The mechanism of interfacial folding and membrane insertion of designed peptides is explored by using an implicit membrane generalized Born model and replica-exchange molecular dynamics. Folding͞insertion simulations initiated from fully extended peptide conformations in the aqueous phase, at least 28 Å away from the membrane interface, demonstrate a general mechanism for structure formation and insertion (when it occurs). The predominately hydrophobic peptides from the synthetic WALP and TMX series first become localized at the membrane-solvent interface where they form significant helical secondary structure via a helix-turn-helix motif that inserts the central hydrophobic residues into the membrane interior, and then fluctuations occur that provide a persistent helical structure throughout the peptide and it inserts with its N-terminal end moving across the membrane. More specifically, we observed that: (i) the WALP peptides (WALP16, WALP19, and WALP23) spontaneously insert in the membrane as just noted; (ii) TMX-1 also inserts spontaneously after a similar mechanism and forms a transmembrane helix with a population of Ϸ50% at 300 K; and (iii) TMX-3 does not insert, but exists in a fluctuating membrane interface-bound form. These findings are in excellent agreement with available experimental data and demonstrate the potential for new implicit solvent͞ membrane models together with advanced simulation protocols to guide experimental programs in exploring the nature and mechanism of membrane-associated folding and insertion of biologically important peptides.implicit solvation ͉ replica-exchange molecular dynamics ͉ TMX-1 ͉ TMX-3 ͉ WALP B iological membranes provide a unique hydrophilic and hydrophobic environment in which a protein may undergo a thermodynamically driven conformational transition from a water-soluble form to a membrane-bound state (1-3). Membrane insertion is a key process in the biological functioning of peptides and proteins such as bacterial toxins (4), antimicrobial peptides (5), and fusion peptides (6). Because of the importance of the processes of membrane association and insertion to our understanding of function in these systems, it is essential to understand the thermodynamic balance between the watersoluble state and the membrane-bound state.The conformational and energetic changes of these peptides͞ proteins at the molecular level during the spontaneous insertion process, generally, remain poorly understood. However, recent experiments using designed (synthetic) model peptides have yielded new insights into these events (6-11). However, a principal experimental difficulty in designing peptides to study spontaneous insertion arises from the insoluble and aggregationprone nature of these highly nonpolar molecules in aqueous solution (8,11). Considering the biological importance of these systems and the processes that control their functioning, modern methods from theory and computational biology should aim to assist experiments in understanding membrane insertion at the molecular leve...