Protein S-acylation (palmitoylation), a reversible posttranslational modification, is critically involved in regulating protein subcellular localization, activity, stability, and multimeric complex assembly. However, proteome scale characterization of S-acylation has lagged far behind that of phosphorylation, and global analysis of the localization of S-acylated proteins within different membrane domains has not been reported. Here we describe a novel proteomics approach, designated palmitoyl protein identification and site characterization (PalmPISC), for proteome scale enrichment and characterization of Sacylated proteins extracted from lipid raft-enriched and non-raft membranes. In combination with label-free spectral counting quantitation, PalmPISC led to the identification of 67 known and 331 novel candidate S-acylated proteins as well as the localization of 25 known and 143 novel candidate S-acylation sites. Palmitoyl acyltransferases DHHC5, DHHC6, and DHHC8 appear to be Sacylated on three cysteine residues within a novel CCX 7-13 C(S/T) motif downstream of a conserved Asp-HisHis-Cys cysteine-rich domain, which may be a potential mechanism for regulating acyltransferase specificity and/or activity. S-Acylation may tether cytoplasmic acylprotein thioesterase-1 to membranes, thus facilitating its interaction with and deacylation of membrane-associated S-acylated proteins. Our findings also suggest that certain ribosomal proteins may be targeted to lipid rafts via S-acylation, possibly to facilitate regulation of ribosomal protein activity and/or dynamic synthesis of lipid raft proteins in situ. In addition, bioinformatics analysis suggested that S-acylated proteins are highly enriched within core complexes of caveolae and tetraspanin-enriched microdomains, both cholesterol-rich membrane structures. The PalmPISC approach and the large scale human Sacylated protein data set are expected to provide powerful tools to facilitate our understanding of the functions and mechanisms of protein S-acylation. Molecular & Cellular Proteomics 9:54 -70, 2010.Protein S-acylation, commonly but somewhat inaccurately known as protein palmitoylation, is a post-translational lipid modification involving the covalent addition of long-chain fatty acids (predominantly the 16-carbon palmitic acid) to protein cysteine thiols via thioester linkages (1). Like other lipid modifications such as myristoylation and prenylation, S-acylation increases the hydrophobicity of cytoplasmic proteins, including many signaling molecules, thereby increasing their affinity for cytosolic membrane surfaces. However, compared with myristoylation and prenylation, S-acylation is more frequently detected on transmembrane proteins such as G proteincoupled receptors, immune cell receptors, and ion channels, all of which are already tightly associated with membranes (2). Moreover, protein S-acylation, which may either occur spontaneously or be catalyzed by palmitoyl acyltransferases (PATs), 1 can be reversed by protein thioesterases such as acyl-protein thioest...