Some G protein-coupled receptors (GPCRs), in addition to activating heterotrimeric G proteins in the plasma membrane, appear to elicit a "second wave" of G protein activation after ligand-induced internalization. We briefly summarize evidence supporting this view and then discuss what is presently known about the functional significance of GPCR-G protein activation in endosomes. Endosomal activation can shape the cellular response temporally by prolonging its overall duration, and may shape the response spatially by moving the location of intracellular second messenger production relative to effectors.It has been more than 20 years since regulated endocytosis of GPCRs 3 through ligand-dependent concentration in coated pits was established (1, 2). Much has been learned since that time about the large number of GPCRs that engage this cellular regulatory mechanism, its biochemical underpinnings, and later events determining receptor-specific trafficking itineraries. However, our understanding of how endocytosis impacts canonical G protein-dependent signaling has remained unchanged. Fundamental to this paradigm is the belief that receptor-mediated activation of cognate heterotrimeric G proteins is restricted to the plasma membrane, and that internalized receptors are effectively silent with regard to this transduction mechanism.Evidence accumulated over the past several years is beginning to challenge this view. Here we summarize data supporting an alternative hypothesis, that endosomes represent dynamic sites of GPCR-G protein activation. We then focus on what is beginning to be learned about the functional significance of the endosome signal, limiting scope to the relatively few GPCRs for which relevant data are presently available. When one considers this limitation, together with the remarkable diversity of membrane trafficking properties that distinguish even very similar GPCR homologs (e.g. Ref.3) and splice variants (e.g. Ref. 4), it seems likely that much more remains to be learned.