SHP1 is a tyrosine phosphatase critical to proximal regulation of TCR signaling. Here, analysis of CD4-Cre SHP1fl/fl conditional knockout thymocytes using CD53, TCRβ, CD69, CD4 and CD8α expression demonstrates the importance of SHP1 in the survival of post selection (CD53+), single-positive thymocytes. Using Ca2+ flux to assess the intensity of TCR signaling demonstrated that SHP1 dampens the signal strength of these same mature, post-selection thymocytes. Consistent with its dampening effect, TCR signal strength was also probed functionally using peptides that can mediate selection of the OT-I TCR, to reveal increased negative selection mediated by lower-affinity ligand in the absence of SHP1. Our data show that SHP1 is required for the survival of mature thymocytes and the generation of the functional T-cell repertoire, as its absence leads to a reduction in the numbers of CD4+ and CD8+ naïve T cells in the peripheral lymphoid compartments.