ErbB3 is unique among other members of the receptor tyrosine kinase family of growth factor receptors in that its kinase domain is enzymatically impaired. This renders it incapable of transducing a signal in response to ligand binding. However, in conjunction with ErbB2, ErbB3 is a potent mediator of signaling by the growth factor heregulin. Heregulin binding to ErbB3 induces formation of a heterodimeric complex with ErbB2, and this results in transactivation of the ErbB2 kinase. Although interaction between the extracellular domains of these receptors is an essential part of this process, it was not clear whether interaction between the cytoplasmic domains is also necessary for transactivation. By examining the abilities of a series of cytoplasmic domain mutants of ErbB3 to activate ErbB2, we have found a discrete sequence of three amino acid residues (LVI), located at the carboxyl-terminal end of the impaired ErbB3 kinase region, that is obligatory for transactivation. We conclude that formation of a functional ErbB2-ErbB3 signaling complex requires the presence of a specific structural feature within the ErbB3 cytoplasmic domain and suggest that ErbB2 transactivation results from a physical interaction between the cytoplasmic domains of these receptors.Receptor tyrosine kinases play a pivotal role in the transduction of extracellular signals into the cells. The binding of cognate growth factors to these cell-surface receptors results in receptor oligomerization and activation of the intrinsic kinase activity (1, 2). This leads to receptor phosphorylation and triggers a cascade of intracellular signaling events that ultimately elicit a variety of cellular responses such as proliferation, differentiation, survival, or migration.An extensively characterized subgroup of this receptor superfamily is the ErbB group of receptors, also known as the class I receptor tyrosine kinases. Members of this group include the epidermal growth factor receptor (EGFR 1 or ErbB1), ErbB2 (also termed HER2 or Neu), ErbB3 (HER3), and ErbB4 (HER4). EGFR binds several distinct ligands including EGF and transforming growth factor-␣ (3). ErbB3 and ErbB4 bind isoforms of the heregulin family (also designated neuregulin or Neu differentiation factor) (4, 5). A ligand that directly binds to ErbB2 has not been identified. Nevertheless, ErbB2 plays an important role in signaling. ErbB2 is transactivated by heterodimerization with ligand-occupied EGFR, ErbB3, or ErbB4 (6 -9).The extensive interreceptor associations that occur in the ErbB family serve to increase the repertoire of cellular responses to growth factor stimulation and to fine-tune growth factor signaling. At least 10 different homo-and heteromeric combinations of ErbB proteins have been reported (10, 11). However, these combinations are not equally favorable. The interreceptor interactions are hierarchically organized, where ErbB2 is the preferred heteromeric partner, and it favors interaction with ErbB3 (12, 13).Cross-talk between ErbB2 and ErbB3 is especially important as the ki...