Ssy5p is a 77-kDa protein believed to be a component of the SPS amino acid sensor complex in the plasma membrane of Saccharomyces cerevisiae. Ssy5p has been suggested to be a chymotrypsin-like serine protease that activates the transcription factor Stp1p upon exposure of the yeast to extracellular amino acid. Here we overexpressed and partially purified Ssy5p to improve our understanding of its structure and function. Antibodies against Ssy5p expressed in Escherichia coli were isolated and used to detect Ssy5p processing in S. cerevisiae cells. Partial purification and N-terminal sequencing of processed Ssy5p revealed in vivo cleavage of Ssy5p between amino acids 381 and 382. We also isolated constitutively signaling SSY5 mutants and quantified target promoter activation and Stp1p processing. One mutant contained an amino acid substitution in the prodomain, whereas three others harbored amino acid substitutions in the protease domain. Dose-response analysis indicated that all four mutants exhibited increased basal levels of Stp1p processing. Interestingly, whereas the three constitutive mutants mapping to the protease domain of Ssy5p exhibited the decreased 50% effective concentration (EC 50 ) characteristic of constitutive mutations previously found in Ssy1p, Ptr3p, and Ssy5p, the EC 50 of the mutation that maps to the prodomain of Ssy5p remained essentially unchanged. In a model of Ssy5p derived from its similarities with ␣-lytic protease from Lysobacter enzymogenes, the sites corresponding to the mutations in the protease domain are clustered in a region facing the prodomain, suggesting that this region interacts with the prodomain and participates in the conformational dynamics of sensing.As part of the regulatory machinery for nutrient uptake (9, 20), the yeast Saccharomyces cerevisiae is equipped with an amino acid sensor in the plasma membrane that initiates signal transduction when extracellular amino acids are available. The signaling results in proteolytic processing of downstream transcription factors and stimulation of transcription of various amino acid permease genes. The sensor consists of the Ssy1p integral membrane protein and two membrane-associated proteins, Ptr3p and Ssy5p (7,13,21,23,25), and has been designated SPS for the complex that its three components are suggested to form (15).Ssy1p, which has high similarity to amino acid permeases, is believed to initiate the signal transduction by recognizing the inducing amino acids on the outside of the plasma membrane. Whereas little is known about the involvement of Ptr3p in amino acid signaling, the function of Ssy5p is now in the process of being unraveled. It has been determined that the Cterminal part of Ssy5p has similarity to chymotrypsin-like serine proteases, and mutational analysis is consistent with this function (1, 2). This suggests that Ssy5p is responsible for the proteolytic removal of the ϳ10-kDa N-terminal fragment of each of the transcription factors Stp1p and Stp2p, resulting in their migration from the cytoplasm/plasma membr...