Hepatocyte growth factor (HGF) is a plasminogen-like protein with an α chain linked to a trypsinlike β chain without peptidase activity. The interaction of HGF with c-met, a receptor tyrosine kinase expressed by many cells, is important in cell growth, migration, and formation of endothelial and epithelial tubes. Stimulation of c-met requires two-chain, disulfide-linked HGF. Portions of an α chain containing an N-terminal segment and four kringle domains (NK4) antagonize HGF activity. Until now, no physiological pathway for generating NK4 was known. Here we show that chymases, which are chymotryptic peptidases secreted by mast cells, hydrolyze HGF, thereby abolishing scatter factor activity while generating an NK4-like antagonist of HGF scatter factor activity. Thus, chymase interferes with HGF directly by destroying active protein and indirectly by generating an antagonist. The site of hydrolysis, Leu 480 , lies in the α chain on the N-terminal side of the cysteine linking the α and β chains. This site appears to be specific for HGF because chymase does not hydrolyze other plasminogen-like proteins, such as macrophage-stimulating protein and plasminogen itself. Mast cell/neutrophil cathepsin G and neutrophil elastase generate similar fragments of HGF by cleaving near the chymase site. Mast cell and neutrophil peptidases are secreted during tissue injury, infection, ischemia, and allergic inflammation, where they may oppose HGF effects on epithelial repair. Thus, HGF possesses an "inactivation segment" that serves as an Achilles' heel attacked by inflammatory proteases. This work reveals a potential physiological pathway for inactivation of HGF and generation of NK4-like antagonists.HGF 2 is a mitogen, motogen, and morphogen for epithelial and mesenchymal cells (1). It is also known as scatter factor because it disperses epithelial cells in culture (2). Genetic deletion in mice suggests that HGF is critical for embryonic development (3). Adult mesenchymal cells also produce HGF, which is thought to regulate tissue regeneration and repair after injury (4, 5), epithelial to mesenchymal transitions, and formation of vessels and other tube-like structures (6). HGF production is inducible. Circulating levels rise markedly in several types of tissue injury, as in liver damage (7), arterial thrombosis (8), or acute rejection of a transplanted lung (9). When used as a drug, HGF stimulates lung regrowth after pneumonectomy (10), diminishes lung fibrosis (11) and allergic airway remodeling (12), and The present work focuses on major inflammatory cell peptidases, including the human mast cell chymotryptic peptidase, chymase, a mouse enzyme, mast cell protease (MCP)4, with similar tissue distribution and enzymatic properties (20)(21)(22), and human neutrophil elastase and cathepsin G. Cathepsin G possesses tryptic, chymotryptic, and metase activity (23) and is expressed by mast cells as well as by neutrophils. Human chymase and cathepsin G are expressed in a subset of mast cells inhabiting the dermis and certain oth...