Abstract. Recent work has demonstrated that p5(~ ok, a member of the Src family of protein tyrosine kinases (PTKs), is modified by palmitoylation of a cysteine residue(s) within the first 10 amino acids of the protein (in addition to amino-terminal myristoylation that is a common modification of the Src family of PTKs). This is now extended to three other members of this family by showing incorporation of [3H]palmitate into p59~, p55f~, and p56 h~, but not into p60 ~. The [3H]palmitate was released by treatment with neutral hydroxylamine, indicating a thioester linkage to the protein. Individual replacement of the two cysteine residues within the first 10 amino acids of p59 fyn and p5(~ ~ with serine indicated that Cys 3 was the major determinant of palmitoylation, as well as association of the PTK with glycosyl-phosphatidylinositol-anchored proteins. Introduction of Cys 3 into p60 ~ led to its palmitoylation, p59 ~" but not p60 s~ partitioned into Triton-insoluble complexes that contain caveolae, microinvaginations of the plasma membrane. Mapping of the requirement for partitioning into caveolae demonstrated that the amino-terminal sequence MetGly-Cys is both necessary and sufficient within the context of a Src family PTK to confer localization into caveolae. Palmitoylation of this motif in p59 fyn also modestly increased its overall avidity for membranes. These results highlight the role of the amino-terminal motif Met-Gly-Cys in determining the structure and properties of members of the Src family of PTKs.T HE Src family of protein tyrosine kinases (PTKs) 1 is comprised of nine members, whose prototype p60 V-~ was first discovered as the transforming gene of Rous sarcoma virus and later found to have as its normal cellular counterpart the protooncogene p60 ¢-~ (3). Many of the members of the Src family are involved in signal transduction and cell activation, with p5~ ~k and p59 fyn being well analyzed examples. Several lines of evidence have implicated p5~ °k and p59 fy* in lymphocyte activation through the T cell antigen receptor (17). These results correlate with the biochemical findings of a direct association between p59 fyn and the CD3/~" chain complex of the T cell receptor (32,42) and between p5(~ ok and the coreceptors CIM and CD8 (31,43).Activation of T cells also occurs after crosslinking of glycosyl-phosphatidylinositol (GPI)-anchored membrane proteins (21, 28). Analysis of the mechanism of lymphocyte activation in this case has led to new insights into the features of GPI-anchored proteins and their role in the cell. The GPI Address all correspondence to Douglas M. Lublin,