The pituitary hormones adrenocorticotropic hormone (ACTH), -endorphin, and ␣-melanocyte stimulating hormone (␣-MSH) are synthesized by proteolytic processing of their common proopiomelanocortin (POMC) precursor. Key findings from this study show that cathepsin L functions as a major proteolytic enzyme for the production of POMC-derived peptide hormones in secretory vesicles. Specifically, cathepsin L knockout mice showed major decreases in ACTH, -endorphin, and ␣-MSH that were reduced to 23, 18, and 7% of wild-type controls (100%) in pituitary. These decreased peptide levels were accompanied by increased levels of POMC consistent with proteolysis of POMC by cathepsin L. The peptide hormones ACTH 2 , -endorphin, and ␣-MSH are produced by proteolytic processing of their common proopiomelanocortin (POMC) prohormone precursor (1, 2). The mature peptide hormones are stored in pituitary secretory vesicles for regulated secretion and control of physiological functions in target organs. ACTH regulates the production of glucocorticoids in the adrenal cortex for control of metabolism (3, 4). ␣-MSH is implicated in the regulation of appetite and the production of melanin (5, 6). -Endorphin is an endogenous opioid peptide involved in pain regulation (7,8). The proteolytic mechanisms that generate these functionally distinct peptide hormones from POMC are essential for these hormones to exert their biological functions.The role of cysteine protease activity for POMC processing has been implicated by several studies (9 -11), but the identity of the protease has not yet been achieved. In early studies of POMC processing activity in pituitary secretory vesicles, cysteine protease activity represented a significant portion of POMC cleaving activity, based on its inhibition by the thiol reagent p-chloromercuribenzoate (9). In anterior and intermediate pituitary cells in culture, treatment of cells with the cysteine protease inhibitor E64d reduced cell levels of POMC-derived ACTH, -endorphin, and ␣-MSH (10, 11). Thus, it is likely that a cysteine protease participates in POMC processing. Participation of a cysteine protease in POMC processing would represent a new protease pathway, in addition to the subtilisinlike prohormone convertase enzymes (PC2 and PC1/3) that participate in processing POMC (12)(13)(14)(15). Therefore, the goal of this study was to identify the cysteine protease that produces ACTH, -endorphin, and ␣-MSH peptide hormones derived from POMC.Herein we provide evidence indicating a key role for the cysteine protease cathepsin L in the biosynthesis of ACTH, -endorphin, and ␣-MSH in secretory vesicles. Cathepsin L gene knock-out mice showed major reductions in pituitary tissue levels of ACTH, -endorphin, and ␣-MSH. Furthermore, cathepsin L KO mouse pituitaries displayed accumulation of POMC, consistent with proteolysis of POMC by cathepsin L. In vivo cellular localization of cathepsin L in pituitary cells demonstrated a high degree of colocalization with -endorphin, ␣-MSH, and ACTH in secretory vesicles. Ex...