Dynamic regulation of signal transduction by reversible palmitoylation-depalmitoylation cycles has been recently described. However, further understanding of fatty acylation reactions has been hampered by our lack of knowledge about the specific transferases and thioesterases involved. Here, we describe an assay for the palmitoyl acyltransferase (PAT) that palmitoylates "myrGlyCys" containing members of the Src family of protein tyrosine kinases (PTKs Modification of proteins by fatty acids greatly alters their structure, function, and subcellular localization and has recently been shown to be involved in several aspects of cellular signaling (see Refs. 1 and 2 for recent reviews). More than 200 proteins are known to be fatty acylated, including viral and cellular proteins (1-3). Roles for protein fatty acylation range from anchoring proteins to membranes (3, 4) and stabilizing protein-protein interactions (5) to regulating enzymatic activities in mitochondria (6). In general, mutations that prevent fatty acylation abolish or greatly alter the biological function of these proteins.Protein fatty acylation can be divided into two categories: myristoylation and palmitoylation. N-Myristoylation involves the cotranslational attachment of the 14-carbon fatty acid myristate onto an N-terminal glycine residue of a protein via an amide linkage. Due to the high stability of this amide bond, myristoylation is irreversible, with some exceptions (7). The enzymology of N-myristoylation has been well characterized (Ref. 8 and references therein). A methionyl aminopeptidase first removes the initiator methionine. N-Myristoyl transferase (NMT) 1 then catalyzes the transfer of myristate to the glycine residue in position two. This glycine residue is an essential element of the substrate recognition sequence, since its substitution by any other amino acid within a protein prevents myristoylation.Many proteins contain the 16-carbon fatty acid palmitate attached to specific cysteine residues. In contrast to myristoylation, palmitoylation occurs post-translationally and is readily reversible. The enzymology of palmitoylation is not well characterized, and a palmitoyl acyltransferase (PAT) has not yet been isolated. No apparent consensus sequence has been found at the palmitoylation site, suggesting the presence of more than one type of PAT. However, the N termini of 7 of 9 members of the Src family of PTKs and several of the ␣ subunits of the heterotrimeric G proteins contain the sequence myrGlyCys, where Cys-3 is palmitoylated (2, 3). In most of these cases, myristoylation has been shown to be a prerequisite for palmitoylation to occur (9, 10).Many signal-transducing proteins translocate reversibly between plasma membrane and cytosol (1, 2). Several have been shown to be reversibly palmitoylated, such as ␣ subunits of G proteins and nitric oxide synthase. These proteins undergo agonist-stimulated palmitate turnover (11,12), suggesting that dynamic palmitoylation of proteins can regulate signal transduction.Little is known about the...