SHP-1 is a cytosolic tyrosine phosphatase implicated in down-regulation of B cell antigen receptor signaling. SHP-1 effects on the antigen receptor reflect its capacity to dephosphorylate this receptor as well as several inhibitory comodulators. In view of our observation that antigen receptor-induced CD19 tyrosine phosphorylation is constitutively increased in B cells from SHP-ldeficient motheaten mice, we investigated the possibility that CD19, a positive modulator of antigen receptor signaling, represents another substrate for SHP-1. However, analysis of CD19 coimmunoprecipitable tyrosine phosphatase activity in CD19 immunoprecipitates from SHP-1-deficient and wild-type B cells revealed that SHP-1 accounts for only a minor portion of CD19-associated tyrosine phosphatase activity. As CD19 tyrosine phosphorylation is modulated by the Lyn protein-tyrosine kinase, Lyn activity was evaluated in wild-type and motheaten B cells. The results revealed both Lyn as well as CD19-associated Lyn kinase activity to be constitutively and inducibly increased in SHP-1-deficient compared with wild-type B cells. The data also demonstrated SHP-1 to be associated with Lyn in stimulated but not in resting B cells and indicated this interaction to be mediated via Lyn binding to the SHP-1 N-terminal SH2 domain. These findings, together with cyanogen bromide cleavage data revealing that SHP-1 dephosphorylates the Lyn autophosphorylation site, identify Lyn deactivation/dephosphorylation as a likely mechanism whereby SHP-1 exerts its influence on CD19 tyrosine phosphorylation and, by extension, its inhibitory effect on B cell antigen receptor signaling.B cell responses to antigen stimulation are transduced intracellularly via the B cell antigen receptor (BCR), 1 a multimeric receptor complex that comprises membrane immunoglobulin and the immunoglobulin ␣ and  chains (1, 2). The signals transmitted consequent to antigen engagement drive B lymphocyte activation via a complex signaling network, which biochemically links the receptor complex to cellular responses such as to proliferation, differentiation, and antibody secretion.Transmission of BCR signals via this intracellular circuitry is further regulated by the integration of accessory signals from BCR comodulators (3) and is highly dependent on reversible protein-tyrosine phosphorylation mediated by the balanced activities of protein-tyrosine kinases (PTKs) and phosphatases (PTPs) (4, 5). The initial events of BCR signal relay are characterized by the activation of several PTKs, including Lyn, Fyn, Blk, Syk, and Btk, and the subsequent recruitment of secondary signaling molecules, including phosphatidylinositol 3-kinase (PI3K), Shc, BLNK/SLP-65, Vav, SOS1, and phospholipase C␥ (6 -12). These initial interactions induce Ras activation, phosphoinositide turnover, increases in intracellular free calcium, and other intermediary events, which ultimately transduce the BCRevoked signal to the nucleus and consequent proliferation, apoptosis, maturation, or other physiological responses. The m...