The previous work of the writer on the aeetylafion of pepsin (1, 2) points to a close relationship between the tyrosine of pepsin and the proteolytic activity of the protein molecule. An acetyl derivative of pepsin was prepared which had 60 per cent of the activity of pepsin, contained three labile acetyl groups, and gave a tyrosine-phenol color value lower by three tyrosine equivalents than that of pepsin. For these and other reasons it seemed probable that the labile acetyl groups were attached to the phenolic hydroxyl groups of tyrosine in pepsin. Attempts to isolate an acetylated tyrosine were unsuccessful due probably to the lability of the acetyl radical. In the hope of obtaining direct and decisive evidence concerning the r61e played by tyrosine in pepsin it was decided to study the action of iodine on pepsin. Iodine is supposed to react with the benzenoid part of tyrosine in proteins (3, 4) and since this type of iodine linkage is known to be relatively stable, it seemed likely that an iodine-tyrosine compound could be isolated from iodinated pepsin.Under certain conditions solutions of native pepsin readily absorb iodine and the proteolyfic activity decreases gradually. Pepsin is practically inactive when the number of iodine atoms per molecule of pepsin is 35--40. There is no appreciable oxidation of pepsin or of glycyl tyrosine by iodine under the conditions used for iodination. The rates of iodination of pepsin and of glycyl tyrosine are affected by a variation of pH in a like manner. The effect of pH is nearly identical with that already noted for acetylation of these two materials.Completely iodinated pepsin was hydrolyzed and the products of hydrolysis containing iodine were fractionated. A solution containing 335