The epidermal growth factor receptor (EGFR) kinase catalyzes phosphorylation of tyrosines in its C terminus and in other cellular targets upon epidermal growth factor (EGF) stimulation. Here, by using peptides derived from EGFR autophosphorylation sites and cellular substrates, we tested the hypothesis that ligand may function to regulate EGFR kinase specificity by modulating the binding affinity of peptide sequences to the active site. Measurement of the steady-state kinetic parameters, K m and k cat , revealed that EGF did not affect the binding of EGFR peptides but increased the binding affinity for peptides corresponding to the major EGFRmediated phosphorylation sites of the adaptor proteins Gab1 (Tyr-627) and Shc (Tyr-317), and for peptides containing the previously identified optimal EGFR kinase substrate sequence EEEEYFELV (3-7-fold). Conversely, EGF stimulation increased k cat ϳ5-fold for all peptides. Thus, ligand changed the relative preference of the EGFR kinase for substrates as evidenced by EGF increases of ϳ5-fold in the specificity constants (k cat /K m ) for EGFR peptides, whereas ϳ15-40-fold increases were observed for other peptides, such as Gab1 Tyr-627. Furthermore, we demonstrate that EGF (i) increased the binding affinity of EGFR to Gab1 Tyr-627 and Shc Tyr-317 sites in purified GST fusion proteins ϳ4 -6-fold, and (ii) EGF significantly enhanced the phosphorylation of these sites, relative to EGFR autophosphorylation, in cell lysates containing the full-length Gab1 and Shc proteins. Analysis of peptides containing amino acid substitutions indicated that residues C-terminal to the target tyrosine were critical for EGF-stimulated increases in substrate binding and regulation of kinase specificity. To our knowledge, this represents the first demonstration that ligand can alter specificity of a receptor kinase toward physiologically relevant targets.Protein-tyrosine kinases, which catalyze the transfer of ␥-phosphate from ATP to tyrosine side chains of peptide and protein substrates, play a central role in cellular signaling. Receptor tyrosine kinases (RTKs) 1 constitute one class of protein kinases that consist of an extracellular ligand binding, a transmembrane, an intracellular tyrosine kinase, and a Cterminal domain that contains tyrosine phosphorylation sites (1). The epidermal growth factor receptor (EGFR, ErbB1, and HER1) is the prototypical member of the ErbB family RTKs, which also includes ErbB2 (HER2, neu), ErbB3 (HER3), and ErbB4 (HER4). Binding of growth factors that are structurally related to EGF induces a process of the receptor dimerization, kinase activation and autophosphorylation (2). EGFR activation results in recruitment and phosphorylation of cytosolic downstream targets such as Grb2-associated binding protein 1 (Gab1) (3), Src homology 2 (SH2) domain, collagen-containing protein (Shc) (4), and phospholipase C␥-1 (PLC␥-1) (5, 6). EGFR functions in the proliferation, migration, survival, and differentiation of mammalian cells (2, 7), and dysregulation of signaling by EGFR ...