Tyrosine kinases of the Janus kinase family initiate cellular responses through their association with receptors for ␣-helical cytokines. In addition to a tyrosine kinase domain, these enzymes possess a kinase-like (KL) domain, whose function remains elusive. To investigate the role of the KL domain of Tyk2 in interferon-␣͞ signaling, we transfected a library of Tyk2 cDNAs containing random point mutations in KL into Tyk2-negative cells and selected for loss-of-function Tyk2 mutants. Four such mutants, V584D, G596V, H669P, and R856G, were identified through this screen. Like the wild-type Tyk2, the mutant proteins were able to sustain the level of IFNAR1 receptor protein. However, all four mutants were incapable of restoring high-affinity interferon-␣ binding in Tyk2-negative cells and were also catalytically impaired, even when transiently overexpressed. Interferon-␣ induced phosphorylation, and gene expression could be detected in V584D-or G596V-expressing cells, but not in H669P-or R856G-expressing cells. Furthermore, H669P and R856G proteins were constitutively highly phosphorylated. All together, our findings demonstrate that an intact KL domain is essential for the intrinsic catalytic activity of Tyk2 and for the establishment of a high-affinity interferon-␣ receptor complex.I n mammals, the four Janus kinases (JAKs) (Tyk2, JAK1, JAK2, and JAK3) have been shown to participate in the early steps of signaling cascades originating from cell surface receptors engaged with ␣-helix-bundled cytokine ligands (1-3). One major pathway triggered by these cytokines involves the catalytic activation of the receptor-associated JAK proteins, tyrosine phosphorylation of the cytoplasmic regions of the receptors, recruitment of SH2-containing signal transducers and activators of transcription (STAT) proteins onto the phosphorylated motifs, and phosphorylation of these transcription factors. Activated STATs then translocate into the nucleus and induce the transcription of target genes (1,4,5). Little is known about the molecular mechanisms regulating the JAK enzymes that play a critical role in this signaling pathway.Sequence alignment of the JAKs reveals seven regions of homology, called JH1 to JH7. The amino-terminal region comprises JH3 through JH7 and has been implicated in receptor interaction and stability (3). JH1, located at the carboxyl terminus, is a tyrosine kinase (TK) domain that contains an activation loop, the phosphorylation of which is required for catalytic activation (6-9). The centrally located JH2 or kinase-like (KL) domain exhibits high sequence identity (up to 30%) with kinase domains but lacks intrinsic catalytic activity. Differences between the KL domain and canonical kinase domains are evident in conserved sequences defining the ATP-and substrate-binding cleft, including the glycine-rich loop; the HRDL motif, which is HGNV in KL; and the DFG motif, which is DPG (10). No tyrosine residues are present in the segment of KL corresponding to the activation loop of active kinase domains.Functional conse...