The deubiquitinating enzyme associated molecule with the SH3 domain of STAM (AMSH) is crucial for the removal of ubiquitin molecules during receptor-mediated endocytosis and lysosomal receptor sorting. AMSH interacts with signal transducing adapter molecule (STAM) 1 or 2, which enhances the activity of AMSH through an unknown mechanism. This stimulation is dependent on the ubiquitin-interacting motif of STAM. Here we investigate the specific mechanism of AMSH stimulation by STAM proteins and the role of the STAM Vps27/ Hrs/STAM domain. We show that, in the presence of STAM, the length of the ubiquitin chains affects the apparent cleavage rate. Through measurement of the chain cleavage kinetics, we found that, although the k cat of Lys 63 -linked ubiquitin chain cleavage was comparable for di-and tri-ubiquitin, the K m value was lower for tri-ubiquitin. This increased affinity for longer chains was dependent on the Vps27/Hrs/STAM domain of STAM and required that the substrate ubiquitin chain contain homogenous Lys 63 -linkages. In addition, STAM directed AMSH cleavage toward the distal isopeptide bond in tri-ubiquitin chains. Finally, we generated a structural model of AMSH-STAM to show how the complex binds Lys 63 -linked ubiquitin chains and cleaves at the distal end. These data show how a deubiquitinating enzyme-interacting protein dictates the efficiency and specificity of substrate cleavage.The ubiquitin system plays a role in a wide range of cellular processes, including protein degradation, cell signaling, transcription regulation, and DNA damage response (1). The regulation of numerous cellular processes by ubiquitin is ascribed to the ability of ubiquitin to form a large spectrum of distinct modifications, from monoubiquitination of a target protein to polyubiquitin chains (2). Polyubiquitin chains are formed by connecting one of seven lysines or the N-terminal ␣-amine within one ubiquitin to Gly 76 of another ubiquitin (3, 4). These linkages are described by the lysine within ubiquitin that donates the amine (e.g. Lys 63 or Lys 48 ). Similar to other posttranslational modifications, ubiquitination is a reversible modification, and the removal of ubiquitin from substrates or the reduction of the polyubiquitin chain length, called "trimming," is catalyzed by a group of enzymes called deubiquitinating enzymes (DUBs).3 About 100 DUBs are encoded by the human genome. They are divided into six families on the basis of their structure and catalytic mechanism (5). Five of the families are cysteine proteases, including ubiquitin-specific proteases, ubiquitin C-terminal hydrolases, ovarian tumor domain DUBs, Machado-Joseph disease proteases, and monocyte chemotactic protein-induced protein DUBs, whereas the sixth family, JAB1/ MPN/MOV34 domain DUBs, are metalloproteases (5). DUBs that cleave polyubiquitin chains exhibit different cleavage specificities depending on the ubiquitin chain linkage. Some DUBs only cleave chains of a single linkage, whereas others cleave several linkage types and still others exhibit l...