Fc␥RIIa is a low affinityIgG receptors (Fc␥R) on monocytes and macrophages mediate immune complex clearance by a process termed phagocytosis (1). At least four classes of Fc␥R are expressed on monocytes and macrophages (2); Fc␥RI, Fc␥RIIa, and Fc␥RIIIa are all activating receptors that are associated with immunoreceptor tyrosine-based activation motif (ITAM). 1 In contrast, Fc␥RIIb is an inhibitory receptor that is associated with an immunoreceptor tyrosine-based inhibition motif (ITIM). Of these receptors Fc␥RIIa is uniquely expressed in human cells and is the only ITAM-associated receptor that bears the ITAM within its cytoplasmic tail (3, 4). Of the ITAMs identified to date, the ITAM of Fc␥RIIa has the longest spacer region between the two YXXL motifs that together make the ITAM. The functional significance of this extended spacer is not fully understood. In addition, Fc␥RIIa is the most widely expressed Fc␥R in the human hematopoetic system.Clustering of Fc␥R by immune complexes initiates a cascade of signaling events, the first of which is the activation of the Src family of tyrosine kinases that phosphorylate the ITAMs of Fc␥R (5, 6). The phosphorylated ITAMs serve as docking sites for SH2 domain-containing cytosolic enzymes and enzymeadapter complexes including the tyrosine kinase Syk and the p85 adapter subunit of PtdIns 3-kinase (7). Association of Syk with the phosphorylated ITAM activates the enzyme resulting in autophosphorylation of Syk and tyrosine phosphorylation of multiple cytosolic proteins (8, 9). Likewise, association of p85 with the ITAM delivers PtdIns 3-kinase to the proximity of its lipid substrates in the membrane, resulting in the generation of 3Ј-phosphorylated inositol lipids that activate PH domaincontaining enzymes to promote cytoskeletal changes required for the phagocytic process (10). Inactivation of either Syk or PtdIns 3-kinase has been shown to completely abrogate Fc␥R-mediated phagocytosis (11)(12)(13)(14).Phagocytosis is a complex process that is accompanied by the generation of reactive oxygen radicals and the production of inflammatory cytokines, which results in tissue damage. Therefore the phagocytic process is subject to a tight regulation. In this regard, several mechanisms have been proposed including the expression and function of the inhibitory receptor Fc␥RIIb (15-17), the function of intracellular inhibitory phosphatases such as the inositol phosphatases SHIP-1 (18 -20) and SHIP-2 (21), and the protein-tyrosine phosphatase SHP-1 (22). Recent studies have revealed that the inositol phosphatases SHIP-1 and SHIP-2 not only work through the ITIM of Fc␥RIIb, but are also capable of associating with the ITAMs of Fc␥R to modulate activation events, thus providing an additional level of complexity to the regulation of phagocytosis (19,20,23). Whereas the molecular details of ITAM-mediated activation of the SHIP proteins is well studied, it is not known how SHP-1 is activated by ITAM-bearing receptors.SHP-1 is a cytosolic tyrosine phosphatase that negatively regulates immu...