Immunoreceptors such as the high affinity IgE receptor, Fc⑀RI, and T-cell receptor-associated proteins share a common motif, the immunoreceptor tyrosine-based activation motif (ITAM). We used the yeast tribrid system to identify downstream effectors of the phosphorylated Fc⑀RI ITAM-containing subunits  and ␥. One novel cDNA was isolated that encodes a protein that is phosphorylated on tyrosine, contains a Src-homology 2 (SH2) domain, inositolpolyphosphate 5-phosphatase activity, three NXXY motifs, several proline-rich regions, and is called SHIP. Mutation of the conserved tyrosine or leucine residues within the Fc⑀RI  or ␥ ITAMs eliminates SHIP binding and indicates that the SHIP-ITAM interaction is specific. SHIP also binds to ITAMs from the CD3 complex and T cell receptor chain in vitro. SHIP protein possesses both phosphatidylinositol-3,4,5-trisphosphate 5-phosphatase and inositol-1,3,4,5-tetrakisphosphate 5-phosphatase activity. Phosphorylation of SHIP by a protein-tyrosine kinase, Lck, results in a reduction in enzyme activity. Fc⑀RI activation induces the association of several tyrosine phosphoproteins with SHIP. SHIP is constitutively tyrosine-phosphorylated and associated with Shc and Grb2. These data suggest that SHIP may serve as a multifunctional linker protein in receptor activation.The aggregation of immunoreceptors by antigen initiates a complex response leading to cellular activation (1). Receptors on T-, B-, and mast cells each contain subunits with similar primary amino acid sequence within their cytosolic domains, comprising the immunoreceptor-based tyrosine activation motif (ITAM), 1 whose consensus is (D/E)X 2 YXX(L/I)X 6 -8 YXX(L/I) (2, 3). Both tyrosine residues within the ITAM are rapidly phosphorylated by protein kinases after receptor aggregation. The bisphosphorylated ITAM then binds directly to cytosolic tyrosine kinases such as Syk in B-cells and mast cells and ZAP70 in T-cells, thereby activating their tyrosine kinase activity (4, 5). In mast cells, the Fc⑀RI subunits  and ␥ each possess a single ITAM, which, when bisphosphorylated on tyrosine, binds to Syk (6 -8).We have used a novel genetic approach, the yeast tribrid system (8), to isolate cDNAs that encode proteins that interact with the tyrosine-phosphorylated Fc⑀RI ␥ ITAM. The yeast two-hybrid system facilitates the study of protein-protein interactions but is limited to the investigation of proteins that are properly expressed and modified in the host, Saccharomyces cerevisiae. S. cerevisiae does not employ tyrosine phosphorylation as a major regulatory modification of proteins (9, 10). This limits the utility of the two-hybrid system, especially in the area of signal transduction, where tyrosine phosphorylation is a critical component of the process. In order to study protein-protein interactions that are dependent on tyrosine phosphorylation or on other post-translational or allosteric modifications, the yeast tribrid system was developed (8, 11).In the yeast tribrid system, a third plasmid is introduced, which directs th...