Protein kinase D (PKD) is activated by phosphorylation in intact cells stimulated by phorbol esters, cell permeant diacylglycerols, bryostatin, neuropeptides, and growth factors, but the critical activating residues in PKD have not been identified. Here, we show that substitution of Ser 744 and Ser 748 with alanine (PKD-S744A/S748A) completely blocked PKD activation induced by phorbol-12,13-dibutyrate (PDB) treatment of intact cells as assessed by autophosphorylation and exogenous syntide-2 peptide substrate phosphorylation assays. Conversely, replacement of both serine residues with glutamic acid (PKD-S744E/S748E) markedly increased basal activity (7.5-fold increase compared with wild type PKD). PKD-S744E/S748E mutant was only slightly further stimulated by PDB treatment in vivo, suggesting that phosphorylation of these two sites induces maximal PKD activation. Two-dimensional tryptic phosphopeptide analysis obtained from PKD mutants immunoprecipitated from 32 P-labeled transfected COS-7 cells showed that two major spots present in the PDB-stimulated wild type PKD or the kinase-dead PKD-D733A phosphopeptide maps completely disappeared in the kinase-deficient triple mutant PKD-D733A/S744E/ S748E. Our results indicate that PKD is activated by phosphorylation of residues Ser 744 and Ser 748 and thus provide the first example of a non-RD kinase that is up-regulated by phosphorylation of serine/threonine residues within the activation loop.Protein kinase C (PKC), 1 a major target for the tumor promoting phorbol esters, has been implicated in the signal transduction of a wide range of biological responses, including changes in cell morphology, differentiation, and proliferation (1-5). Molecular cloning has demonstrated the presence of multiple related PKC isoforms (5-8) i.e. classic PKCs (␣, 1, 2, and ␥), novel PKCs (␦, ⑀, , and ) and atypical PKCs ( and ) all of which possess a highly conserved catalytic domain. Despite intense investigation, the events occurring downstream of specific isoforms of PKC remain poorly defined.The newly identified PKD is a mouse serine/threonine protein kinase with distinct structural and enzymological properties (9). The catalytic domain of PKD is distantly related to Ca 2ϩ -regulated kinases and shows little similarity to the highly conserved regions of the kinase subdomains of the PKC family (10). Consistent with this, PKD does not phosphorylate a variety of substrates utilized by PKCs, indicating that PKD is a protein kinase with distinct substrate specificity (9, 11). In contrast to all known PKCs, including mammalian, Drosophila, and yeast isoforms (12), the NH 2 -terminal region of PKD contains a pleckstrin homology domain that regulates enzyme activity (13) and lacks a sequence with homology to a typical PKC autoinhibitory pseudosubstrate motif (9). However, the amino-terminal region of PKD contains a tandem repeat of cysteine-rich, zinc finger-like motifs that binds phorbol esters with high affinity (9). Immunopurified PKD is markedly stimulated by either biologically active...