Release factor-dependent hydrolysis of the peptidyl-tRNA ester bond requires location of the peptidyl-tRNA in the ribosomal P-site (2), NH4+ or K+ (4), and is inhibited by several antibiotics that also inhibit peptide bond formation (4-6). These characteristics are similar to those of the ribosomal enzyme peptidyl transferase. Such circumstantial information has led several investigators (4-7) to speculate on the possible involvement of peptidyl transferase in peptidyltRNA hydrolysis occurring at chain termination. Our interest in the mechanism of peptide chain termination led us to the study of peptidyl transferase. Monro and Vasquez (8) have greatly simplified study of peptidyl transferase and conducted extensive studies characterizing itsactivity. These investigators measure the ribosomal-dependent formation of fMet-puromycin from fMettRNA or 3'-terminal fragments of fMet-tRNA as an index of peptidyl transferase activity. Such reactions proceed in vitro with fMet-tRNA, K+ or NH4+, puromycin, 50S (bacterial) or 60S (eukaryotic) ribosomal subunits, and ethanol (9). Thus, peptidyl transferase activity is a function of the larger ribosomal subunit and can be studied independently When reactions contain fMet-tRNA, 50S (bacterial) ribosomal subunits, ethanol, and tRNA or its 3'-terminal oligonucleotide CpCpA, the reaction product is fMet-ethyl ester (10). Using different experimental approaches, ribosomal-dependent ester formation has been observed by Rich and his associates (7,11,12). The characteristics of both reactions indicate that transesterification is catalyzed by peptidyl transferase. This report describes the hydrolysis of ribosomal-bound fMet-tRNA by peptidyl transferase in reactions containing acetone and tRNA. The demonstration of the hydrolytic capacity of peptidyl transferase provides additional indirect evidence for its involvement in the peptide chain termination event.