Tyrosine 984 in the juxtamembrane region of the insulin receptor, between the transmembrane helix and the cytoplasmic tyrosine kinase domain, is conserved among all insulin receptor-like proteins from hydra to humans. Crystallographic studies of the tyrosine kinase domain and proximal juxtamembrane region reveal that Tyr-984 interacts with several other conserved residues in the N-terminal lobe of the kinase domain, stabilizing a catalytically nonproductive position of ␣-helix C. Steady-state kinetics measurements on the soluble kinase domain demonstrate that replacement of Tyr-984 with phenylalanine results in a 4-fold increase in k cat in the unphosphorylated (basal state) enzyme. Moreover, mutation of Tyr-984 in the full-length insulin receptor results in significantly elevated receptor phosphorylation levels in cells, both in the absence of insulin and following insulin stimulation. These data demonstrate that Tyr-984 plays an important structural role in maintaining the quiescent, basal state of the insulin receptor. In addition, the structural studies suggest a possible target site for small molecule activators of the insulin receptor, with potential use in the treatment of noninsulin-dependent diabetes mellitus.The insulin receptor is a member of the receptor tyrosine kinase (RTK) 1 family of cell surface receptors. Unlike the majority of RTKs, which are monomeric in the absence of ligand, the insulin receptor is a disulfide-linked heterotetramer comprising two extracellular ␣ subunits and two membrane-spanning  subunits (1, 2). Upon insulin binding to the ␣ subunits, the insulin receptor undergoes a poorly characterized structural rearrangement that facilitates autophosphorylation of specific tyrosine residues in the cytoplasmic portion of the  subunits. Tyrosine autophosphorylation stimulates receptor catalytic (tyrosine kinase) activity (3) and creates recruitment sites for downstream signaling molecules such as the insulin receptor substrate (IRS) proteins (4) and APS (5).Three tyrosine residues in the cytoplasmic juxtamembrane region of the insulin receptor, Tyr-965, Tyr-972, and Tyr-984, are conserved to various extents in the insulin receptor subfamily of RTKs (Fig. 1). This subfamily includes the insulin receptor, the insulin-like growth factor-1 (IGF1) receptor, the insulin receptor-related receptor (IRR), and insulin receptorlike proteins in invertebrates such as Daf-2 in Caenorhabditis elegans and DIR in Drosophila melanogaster. Tyr-965, an autophosphorylation site that is not conserved in the invertebrate receptors, appears to be involved in receptor endocytosis (6, 7). Tyr-972, invariant in the insulin receptor subfamily, is an essential autophosphorylation site (NPXY motif) that recruits IRS proteins (4), Shc (8), and Stat-5b (9) via a phosphotyrosinebinding domain in these adapter proteins. Tyr-984 is also invariant in this subfamily, yet its role in insulin receptor signaling has not been determined. Biochemical studies indicate that Tyr-984 is not, to any appreciable extent, a site of a...