Src homology 2 (SH2) domains are composed of weakly conserved sequences of ∼100 aa that bind phosphotyrosines in signaling proteins and thereby mediate intra-and intermolecular protein-protein interactions. In exploring the mechanism whereby tyrosine phosphorylation of the erythrocyte anion transporter, band 3, triggers membrane destabilization, vesiculation, and fragmentation, we discovered a SH2 signature motif positioned between membrane-spanning helices 4 and 5. Evidence that this exposed cytoplasmic sequence contributes to a functional SH2-like domain is provided by observations that: (i) it contains the most conserved sequence of SH2 domains, GSFLVR; (ii) it binds the tyrosine phosphorylated cytoplasmic domain of band 3 (cdb3-PO 4 ) with K d = 14 nM; (iii) binding of cdb3-PO 4 to erythrocyte membranes is inhibited both by antibodies against the SH2 signature sequence and dephosphorylation of cdb3-PO 4 ; (iv) label transfer experiments demonstrate the covalent transfer of photoactivatable biotin from isolated cdb3-PO 4 (but not cdb3) to band 3 in erythrocyte membranes; and (v) phosphorylation-induced binding of cdb3-PO 4 to the membrane-spanning domain of band 3 in intact cells causes global changes in membrane properties, including (i) displacement of a glycolytic enzyme complex from the membrane, (ii) inhibition of anion transport, and (iii) rupture of the band 3-ankyrin bridge connecting the spectrin-based cytoskeleton to the membrane. Because SH2-like motifs are not retrieved by normal homology searches for SH2 domains, but can be found in many tyrosine kinase-regulated transport proteins using modified search programs, we suggest that related cases of membrane transport proteins containing similar motifs are widespread in nature where they participate in regulation of cell properties.SH2 domain motif | tyrosine phosphorylation | erythrocyte glycolysis | anion exchanger 1 | regulation of transport proteins P rotein tyrosine phosphorylation is involved in the regulation of most cellular process, including proliferation, survival, differentiation, responses to stress, and control of cell shape/motility (1). Whereas phosphotyrosine binding (PTB) domains may mediate association with tyrosine-containing sequences regardless of their phosphorylation state, Src homology 2 (SH2) domains promote protein association only when critical tyrosine residues become phosphorylated. This strict dependence on tyrosine phosphorylation creates a molecular switch that can be sensitively controlled by upstream tyrosine kinases (1). Whereas some SH2 domains facilitate association between heterologous proteins in a signaling pathway, others mediate intrapolypeptide interactions that change protein conformation and thereby alter signaling function (2). In all cases, association between the SH2 domain and the interacting phosphotyrosine involves formation of weak interactions between a highly conserved G(S/T)FLVR sequence of the SH2 domain and the phosphate present on the phosphorylated tyrosine. To date, all 120 known SH2 domain...