To identify potential signaling molecules involved in mediating insulin-induced biological responses, a yeast two-hybrid screen was performed with the cytoplasmic domain of the human insulin receptor (IR) as bait to trap high-affinity interacting proteins encoded by human liver or HeLa cDNA libraries. A SH2-domain-containing protein was identified that binds with high affinity in vitro to the autophosphorylated IR. The mRNA for this protein was found by Northern blot analyses to be highest in skeletal muscle and was also detected in fat by PCR. To study the role of this protein in insulin signaling, a full-length cDNA encoding this protein (called Grb-IR) was isolated and stably expressed in Chinese hamster ovary cells overexpressing the human IR. Insulin treatment of these cells resulted in the in situ formation of a complex of the IR and the 60-kDa Grb-IR. Although almost 75% of the Grb-IR protein was bound to the IR, it was only weakly tyrosine-phosphorylated. The formation of this complex appeared to inhibit the insulin-induced increase in tyrosine phosphorylation of two endogenous substrates, a 60-kDa GTPase-activating-protein-associated protein and, to a lesser extent, IR substrate 1. The subsequent association of this latter protein with phosphatidylinositol 3-kinase also appeared to be inhibited. These findings raise the possibility that Grb-IR is a SH2-domain-containing protein that directly complexes with the IR and serves to inhibit signaling or redirect the IR signaling pathway.In recent years extensive progress has been made in our understanding of how the insulin receptor (IR) and other receptor tyrosine kinases signal subsequent cellular biological responses. A major advance has been the identification of a particular amino acid sequence motif (called the SH2 domain) that binds to tyrosine-phosphorylated proteins with relatively high affinity (1). The specificity of these SH2 domains varies depending upon the amino acid residues immediately surrounding the phosphotyrosine [Tyr(P)]. Some of these SH2-domain-containing proteins [such as the SH2-domaincontaining phosphatidylinositol (PI) 3-kinase and the tyrosine phosphatase SH-PTP2] have an intrinsic enzymatic activity that is activated upon binding to a tyrosine-phosphorylated protein. Others serve to link tyrosine-phosphorylated proteins to another protein with enzymatic activity (for example, Grb-2 links tyrosine-phosphorylated proteins to a guaninenucleotide-release protein for Ras called SOS) (1). In the case of most receptors with tyrosine kinase activity, multiple SH2-domain-containing proteins have been identified that bind to these autophosphorylated receptors with high affinity (2). In contrast, for insulin and insulin-like growth factor I receptors, these same SH2-domain-containing proteins only weakly bind to these receptors. However, a cytoplasmic substrate of the IR tyrosine kinase, called IR substrate 1 (IRS-1), has been identified that binds to these SH2-domain-containing proteins with high affinity (3). Whether the binding o...