Deubiquitinating enzymes (DUBs) are negative regulators of protein ubiquitination and play an important role in ubiquitindependent processes. Recent studies have found that diverse cellular mechanisms are employed to control the activity of DUBs. Ubiquitin C-terminal hydrolase-L1 (UCH-L1) is a highly expressed neuronal DUB linked to Parkinson disease; however, little is known about its specific functions or modes of regulation. Here, we demonstrate that UCH-L1 is post-translationally modified by monoubiquitin in cells, at lysine residues near the active site. This modification restricts enzyme activity by preventing binding to ubiquitinated targets, and permanent monoubiquitination, as mimicked by a ubiquitin-UCH-L1 fusion, inhibits UCH-L1 in its capacity to increase free ubiquitin levels in cells. Interestingly, UCH-L1 catalyzes its own deubiquitination in an intramolecular manner, thereby regulating the lifetime of this modification. Our results illustrate monoubiquitination as a reversible regulatory mechanism for DUB activity involving auto-deubiquitination.Protein ubiquitination is a central regulator in numerous cellular processes, including protein degradation, cell cycle progression, and transcriptional regulation (1). The enzymatic system for conjugating ubiquitin to protein substrates is well characterized and results in conjugation of ubiquitin to the ⑀-amino group of lysine residues or in some cases to the N-terminal amino group of target proteins (2, 3). Proteins can be modified by monomeric ubiquitin (termed monoubiquitination) or by ubiquitin chains formed by conjugation of additional ubiquitin molecules to various lysines within ubiquitin (referred to as polyubiquitination). The number and conformation of appended ubiquitin molecules determine the fate of the target protein. While Lys-48-linked polyubiquitin chains typically target proteins for proteasomal degradation, monoubiquitination at one or more lysines triggers a variety of effects depending on the substrate protein, including endocytosis, gene silencing, and DNA repair (4, 5). Our understanding of the many functions associated with ubiquitination continues to grow with the identification of additional protein substrates targeted by this versatile modification.Like protein phosphorylation, ubiquitination is reversible, and deubiquitination plays an important role in regulating ubiquitin-dependent pathways. Removal of ubiquitin is accomplished by DUBs, 2 a diverse class of nearly 80 enzymes in humans, which cleave ubiquitin from proteins, peptides, or small molecules (6, 7). Although specific substrates have been identified for relatively few DUBs, the importance of this enzyme class is highlighted by recent studies which reveal tight regulation of their activity. Transcriptional regulation, proteinprotein interactions, and post-translational modifications are known to regulate DUB activity (7,8). For example, the DUB USP1 (ubiquitin-specific protease-1) is inactivated by a UV irradiation-induced auto-cleavage event, allowing for accumulat...