Background: Mechanisms underlying GPCR-mediated EGFR transactivation are not fully defined. Results: Heterotrimeric G proteins directly regulate membrane-localized MMP14/MT1-MMP, resulting in HB-EGF release and EGFR transactivation. Conclusion: These results define a previously unrecognized, membrane-delimited mechanism for EGFR transactivation. Significance: This mechanism likely plays a role in settings that involve GPCR-RTK transactivation and may represent new therapeutic opportunities.