In addition to its role in reversible membrane localization of signal-transducing proteins, protein fatty acylation could play a role in the regulation of mitochondrial metabolism. Previous studies have shown that several acylated proteins exist in mitochondria isolated from COS-7 cells and rat liver. Here, a prominent fatty-acylated 165-kDa protein from rat liver mitochondria was identified as carbamoyl-phosphate synthetase 1 (CPS 1). Covalently attached palmitate was linked to CPS 1 via a thioester bond resulting in an inhibition of CPS 1 activity at physiological concentrations of palmitoyl-CoA. This inhibition corresponds to irreversible inactivation of CPS 1 and occurred in a time-and concentration-dependent manner. Fatty acylation of CPS 1 was prevented by preincubation with N-ethylmaleimide and 5-p-fluorosulfonylbenzoyladenosine, an ATP analog that reacts with CPS 1 active site cysteine residues. Our results suggest that fatty acylation of CPS 1 is specific for long-chain fatty acyl-CoA and very likely occurs on at least one of the essential cysteine residues inhibiting the catalytic activity of CPS 1. Inhibition of CPS 1 by long-chain fatty acylCoAs could reduce amino acid degradation and urea secretion, thereby contributing to nitrogen sparing during starvation.The covalent modification of proteins by lipids alters their physical and functional properties. Several types of lipids are covalently bound to proteins as follows: isoprenoids, glycosylphosphatidylinositols, cholesterol, and fatty acids (1-4). Protein fatty acylation is the modification of proteins by fatty acids. It is divided into two categories, myristoylation and palmitoylation. In myristoylation, the 14-carbon myristate is co-translationally attached to the N-terminal glycine residue of a protein via a stable amide bond. Palmitoylation is characterized by the post-translational attachment of the 16-carbon fatty acid palmitate to cysteine residues of a protein via a thioester bond. Due to its reversible nature, palmitoylation has been shown recently to regulate the subcellular localization of several proteins involved in signal transduction processes (1,5,6). For protein palmitoylation to occur, palmitate needs to be activated in the form of its coenzyme A derivative, palmitoyl-CoA.Interestingly, palmitoyl-CoA, the acyl donor for protein palmitoylation, inhibits several enzymes including rat adipocyte pyruvate dehydrogenase (7), rat liver ADP/ATP translocase (8), bovine liver glutamate dehydrogenase (9), and bovine liver methylmalonyl semialdehyde dehydrogenase (MMSDH)