This paper describes the purification and properties of an enzyme present in yeast which splits N‐acetylphenylalanyl‐tRNA to N‐acetylphenylalanine and tRNA. The enzyme has been extensively purified, as shown by gel electrophoresis. The hydrolase has a molecular weight of 35000 as estimated by filtration on Sephadex G‐150, is maximally active in the presence of a divalent cation (Mg2+, Mn2+ or Ca2+) and has a pH optimum at around neutrality. The enzyme is highly specific in hydrolyzing N‐acetylphenylalanyl‐tRNA (Km=0.4 μM). Phenylalanyl‐tRNA is hydrolyzed with a similar apparent affinity but with an efficiency of 40% of that found for N‐acetylphenylalanyl‐tRNA. Other free or N‐substituted aminoacyl‐tRNAs are not substrates of this hydrolase. Neither of the two reaction products are effective inhibitors of this enzyme. Based on its substrate specificity, the trivial name of N‐acetylphenylalanyl‐tRNA hydrolase is proposed for this enzyme.