DAF‐2, the Caenorhabditis elegans insulin‐like receptor homolog, regulates larval development, metabolism, stress response, and lifespan. The availability of numerous daf‐2 mutant alleles has made it possible to elucidate the genetic mechanisms underlying these physiological processes. The DAF‐2 pathway is significantly conserved with the human insulin/IGF‐1 signaling pathway; it includes proteins homologous to human IRS, GRB‐2, and PI3K, making it an important model to investigate human pathological conditions. We expressed and purified the kinase domain of wild‐type DAF‐2 to examine the catalytic activity and substrate specificity of the enzyme. Like the human insulin receptor kinase, DAF‐2 kinase phosphorylates tyrosines within specific YxN or YxxM motifs, which are important for recruiting downstream effectors. DAF‐2 kinase phosphorylated peptides derived from the YxxM and YxN motifs located in the C‐terminal extension of the receptor tyrosine kinase, consistent with the idea that the DAF‐2 receptor may possess independent signaling capacity. Unlike the human insulin or IGF‐1 receptor kinases, DAF‐2 kinase was poorly inhibited by the small‐molecule inhibitor linsitinib. We also expressed and purified mutant kinases corresponding to daf‐2 alleles that result in partial loss‐of‐function phenotypes in C. elegans. These mutations caused a complete loss of kinase function in vitro. Our biochemical investigations provide new insights into DAF‐2 kinase function, and the approach should be useful for studying other mutations to shed light on DAF‐2 signaling in C. elegans physiology.