We have previously reported that Saccharomyces cerevisiae has three glutathione peroxidase homologues (GPX1, GPX2, and GPX3) (Inoue, Y., Matsuda, T., Sugiyama, K., Izawa, S., and Kimura, A. (1999) J. Biol. Chem. 274, 27002-27009). Of these, the GPX2 gene product (Gpx2) shows the greatest similarity to phospholipid hydroperoxide glutathione peroxidase. Here we show that GPX2 encodes an atypical 2-Cys peroxiredoxin which uses thioredoxin as an electron donor. Gpx2 was essentially in a reduced form even in mutants defective in glutathione reductase or glutaredoxin under oxidative stressed conditions. On the other hand, Gpx2 was partially oxidized in a mutant defective in cytosolic thioredoxin (trx1⌬trx2⌬) under non-stressed conditions and completely oxidized in tert-butyl hydroperoxide-treated cells of trx1⌬trx2⌬ and thioredoxin reductase-deficient mutant cells. Alanine scanning of cysteine residues of Gpx2 revealed that an intramolecular disulfide bond was formed between Cys 37 and Cys 83 in vivo. Gpx2 was purified to determine whether it functions as a peroxidase that uses thioredoxin as an electron donor in vitro. Gpx2 reduced H 2 O 2 and tert-butyl hydroperoxide in the presence of thioredoxin, thioredoxin reductase, and NADPH (for H 2 O 2 , K m ؍ 20 M, k cat ؍ 9.57 ؋ 10 2 s ؊1 ; for tert-butyl hydroperoxide, K m ؍ 62.5 M, k cat ؍ 3.68 ؋ 10 2 s ؊1 ); however, it showed remarkably less activity toward these peroxides in the presence of glutathione, glutathione reductase, and NADPH. The sensitivity of yeast cells to tert-butyl hydroperoxide was found to be exacerbated by the co-existence of Ca 2؉ , a tendency that was most obvious in gpx2⌬ cells. Although the redox state of Gpx2 was not affected by Ca 2؉ , the Gpx2 level was markedly increased in the presence of both tert-butyl hydroperoxide and Ca 2؉ . Gpx2 is likely to play an important role in the protection of cells from oxidative stress in the presence of Ca 2؉