Dopamine and cAMP-regulated phosphoprotein of Mr 32,000 (DARPP-32) plays an obligatory role in most of the actions of dopamine. In resting neostriatal slices, cyclin-dependent kinase 5 (Cdk5) phosphorylates DARPP-32 at Thr-75, thereby reducing the efficacy of dopaminergic signaling. We report here that dopamine, in slices, and acute cocaine, in whole animals, decreases the state of phosphorylation of striatal DARPP-32 at Thr-75 and thereby removes this inhibitory constraint. This effect of dopamine is achieved through dopamine D1 receptor-mediated activation of cAMP-dependent protein kinase (PKA). The activated PKA, by decreasing the state of phosphorylation of DARPP-32-Thr-75, deinhibits itself. Dopamine D2 receptor stimulation has the opposite effect. The ability of activated PKA to reduce the state of phosphorylation of DARPP-32-Thr-75 is apparently attributable to increased protein phosphatase-2A activity, with Cdk5 being unaffected. Together, these results indicate that via positive feedback mechanisms, Cdk5 signaling and PKA signaling are mutually antagonistic.D opamine and cAMP-regulated phosphoprotein of M r 32,000 (DARPP-32) is a cytosolic protein that is selectively enriched in neostriatal medium spiny neurons (1, 2). When DARPP-32 is phosphorylated by cAMP-dependent protein kinase (PKA) on a single threonine residue, Thr-34, it is converted into a potent inhibitor of protein phosphatase-1 (PP-1) (3). Dopamine and numerous other neurotransmitters have been shown to regulate the phosphorylation͞dephosphorylation of DARPP-32 at Thr-34 in neostriatum, thereby altering the activity of PP-1 and regulating the phosphorylation state and activity of many downstream physiological effectors, including various neurotransmitter receptors and voltage-gated ion channels (4). Mice lacking DARPP-32 exhibit profound deficits in their molecular, electrophysiological, and behavioral responses to dopamine, drugs of abuse, and antipsychotic medication, demonstrating the importance of the DARPP-32͞PP-1 signaling cascade in mediating the actions of dopamine, agents that affect dopamine signaling, and other neurotransmitters that act on neostriatal neurons (4, 5).We have recently reported that DARPP-32 is phosphorylated by cyclin-dependent kinase 5 (Cdk5), both in vitro and in neostriatal neurons (6). In vitro, phospho-Thr-75 DARPP-32 inhibits PKA by a competitive mechanism. In vivo, reduction of phospho-Thr-75 DARPP-32 in neostriatal slices, either by the Cdk5 inhibitor roscovitine or by the use of genetically altered mice (p35 Ϫ/Ϫ mice), results in increased biochemical and physiological responses to dopamine (6). These results demonstrated that PKA activity in the neostriatum is regulated by the state of phosphorylation of DARPP-32 at Thr-75. Thus, DARPP-32 is a bifunctional signal transduction molecule that controls the activities of PP-1 and PKA through the phosphorylation of Thr-34 and Thr-75, respectively.Apart from the effect of Cdk5, nothing has been known about the signaling mechanisms involved in the regulation of ...