Substrate degradation and cell migration are key steps in cancer metastasis. Membrane-type 1-matrix metalloproteinase (MT1-MMP) has been linked with these processes. Using the fluorescein isothiocyanate (FITC)-labeled fibronectin degradation assay combined with the phagokinetic cell migration assay, structurefunction relationships of MT1-MMP were studied. Our data indicate that MT1-MMP initiates substrate degradation and enhances cell migration; cell migration occurs as a concurrent but independent event. Using recombinant DNA approaches, we demonstrated that the hemopexin-like domain and a nonenzymatic component of the catalytic domain of MT1-MMP are essential for MT1-MMP-mediated cell migration. Because the cytoplasmic domain of MT1-MMP was not required for MT1-MMP-mediated fibronectin degradation and cell migration, it is proposed that cross-talk between the hemopexin domain of MT1-MMP and adjacent cell surface molecules is responsible for outside-in signaling. Employing cDNAs encoding dominant negative mutations, we demonstrated that Rac1 participates in the MT1-MMP signal transduction pathway. These data demonstrated that each domain of MT1-MMP plays a distinct role in substrate degradation and cell migration.Cell migration and invasion are critical coordinated events in the cancer dissemination process (1, 2). Cell migration involves the locomotion of a cell over an extracellular matrix (ECM) 1 substratum (3). Extension of the leading edge is associated with adhesion, i.e. binding of integrins to their ECM ligands leading to subsequent migration and further invasion (4). Cancer cell invasion requires degradation of surrounding ECM and basement membrane by proteinases located at the leading edge of migrating cells. Extracellular proteolytic enzymes, i.e. matrix metalloproteinases (MMPs), serine and cysteine proteinases have long been implicated in cancer metastasis (1, 5).MMPs have been linked to the metastatic phenotype of tumor cells through both correlative and functional studies. Production and activation of MMPs in tumors are required for degradation of the ECM and dissemination of cancer cells to distant organs (2). MMPs also play an important role in tumor angiogenesis (6). The mechanism of activation of latent MMP-2 (pMMP-2) in tumors has been the focus of considerable recent interest based on the identification of a new category of intrinsic membrane-type MMPs (MT1, 2, 3, 4, 5, and 6-MMPs) (7).MT1-MMP is able to activate pMMP-2 on the surface of tumor cells by assembling a unique triplex with tissue inhibitor of matrix metalloproteinase-2 (TIMP-2) and pMMP-2; a second MT1-MMP molecule then cleaves the propeptide of pMMP-2, thereby activating the enzyme at the cell surface (8 -10). Integrin receptors, ␣ 3  1 and ␣ v  3 , participate in this response (11). Recombinant MT1-MMP hydrolyze collagen types I, II, and III and digests cartilage proteoglycan, fibronectin, fibrinogen, vitronectin, and laminin (12).It is now recognized that the actions of MMPs are not restricted to the simple breakdown of ECM...