Tyrosine phosphorylation of the 22-residue cytoplasmic region of ephrinB induces its binding to the SH2 domain of Grb4, thus initiating reverse signaling pathways controlling cytoskeleton assembly and remodeling. Recently, the region corresponding to this 22-residue motif was demonstrated to adopt a well packed -hairpin structure with a high conformational stability in the unphosphorylated cytoplasmic subdomain. However, because the binding to Grb4 is phosphorylationdependent and the hairpin contains three conserved tyrosine residues that may be phosphorylated, the key events remain unknown as to how tyrosine phosphorylation affects the structure of this well packed -hairpin and which phosphorylation site is relevant to SH2 domain binding. By characterizing the structural and binding properties of six 22-residue SH2 domain-binding motifs with different phosphorylated sites, the present study reveals that, as shown by circular dichroism and NMR, the unphosphorylated 22-residue motif adopts a well formed -hairpin structure in isolation from the ephrinB cytoplasmic subdomain. However, this -hairpin is radically abolished by tyrosine phosphorylation, regardless of the relative location and number of Tyr residues. Unexpectedly, the peptides with either Tyr 304 or Tyr 316 phosphorylated show high affinity binding to SH2 domain, whereas the peptide with Tyr 311 phosphorylated has no detectable binding. This implies that ephrinB with Tyr 311 phosphorylated might have a currently unidentified binding partner distinct from the Grb4 protein, because Tyr 311 is known to be phosphorylated in vivo. Based on the results above, it is thus proposed that the disruption of the tight side-chain packing by tyrosine phosphorylation in the well structured region of a signaling protein may represent a general activation mechanism by which a cryptic binding site is disclosed for new protein-protein interactions.The Eph 1 receptors, with a total of 14 members, is the largest known family of receptor tyrosine kinases. They are implicated to function at the interface between pattern development and morphogenesis, such as axon guidance, cell migration, segmentation, and angiogenesis (1-5). The signaling network mediated by Eph receptors and their ligand ephrin is conserved among metazoans, and eight mammalian ephrins have been identified so far. These can be grouped into two structural and functional families, ephrinA and ephrinB. EphrinB and their Eph receptors are all plasma membrane-anchored proteins and are unique in their ability to transmit signals bidirectionally, thus mediating contact-dependent cell-cell interactions for guidance and assembly of cells (4 -7). Recently, the Eph-ephrinB-mediated signaling network has been found to be involved in learning and memory formation (8), and differential expressions of ephrinB were also correlated with tumorigenesis (9).The cytoplasmic tail of the ephrinB proteins plays a central role in mediating reverse signaling via protein-protein interactions with intracellular protein binding partn...