The stromal processing peptidase (SPP) catalyzes removal of transit peptides from a diversity of precursor proteins imported into chloroplasts. SPP contains an HXXEH zinc-binding motif characteristic of members of the metallopeptidase family M16. We previously found that the three steps of precursor processing by SPP (i.e. transit peptide binding, removal, and conversion to a degradable subfragment) are mediated by features that reside in the C-terminal 10 -15 residues of the transit peptide. In this study, we performed a mutational analysis of SPP to identify structural elements that determine its function. SPP loses the ability to proteolytically remove the transit peptide when residues of the HXXEH motif, found in an N-terminal region, are mutated. Deletion of 240 amino acids from its C terminus also abolishes activity. Interestingly, however, SPP can still carry out the initial binding step, recognizing the Cterminal residues of the transit peptide. Hence, transit peptide binding and removal are two separable steps of the overall processing reaction. Transit peptide conversion to a subfragment also depends on the HXXEH motif. The precursor of SPP, containing an unusually long transit peptide itself, is not proteolytically active. Thus, the SPP precursor is synthesized as a latent form of the metallopeptidase.Chloroplast biogenesis and function depends on the import of a large diversity of proteins from the cytoplasm. These proteins are synthesized as precursors containing an N-terminal targeting signal, called the transit peptide, that mediates multiple steps in the import pathway (for reviews, see Refs. 1-4). Whereas the chloroplast is unique to the plant cell, the mitochondrion and the endoplasmic reticulum (ER) 1 are two other major eukaryotic organelles that depend on massive protein translocation mediated by N-terminal targeting signals. It has been predicted for Arabidopsis thaliana that up to 11,000 different precursor proteins may be targeted to these three organelles, ϳ3,500 to the chloroplast alone (5). Distinct properties of the targeting signals ensure organelle-specific sorting and translocation of the precursor proteins. Ultimately, highly specialized proteolytic enzymes that reside in each organelle remove the targeting signals (for a review, see Ref. 6).We have identified a general stromal processing peptidase (SPP) that removes transit peptides from an array of precursors involved in different biosynthetic pathways and destined for different chloroplast compartments (7). The activity of SPP, which is a soluble, monomeric enzyme, depends on metal ions (8). Analysis of a full-length SPP cDNA from pea revealed that the enzyme contains an HXXEH zinc-binding motif characteristic of members of the metallopeptidase family M16, such as pitrilysin, insulin-degrading enzyme, and the -subunit of the mitochondrial processing peptidase (MPP) (9, 10). Conservation extends beyond the zinc-binding motif, where 25-30% identity is found in an N-terminal region of ϳ200 residues of SPP. The residues of the HXX...