Src tyrosine kinase plays key roles in signal transduction following growth factor stimulation and integrinmediated cell-substrate adhesion. Since src-signal transduction defects are implicated in a multitude of human diseases, we have sought to develop new ways to identify small molecule inhibitors using a yeast-based, activatedsrc over-expression system. In the present study, we describe the identi®cation of a unique src-signal transduction inhibitor, UCS15A. UCS15A was found to inhibit the src speci®c tyrosine phosphorylation of numerous proteins in v-src-transformed cells. Two of these phosphoproteins were identi®ed as bona-®de src substrates, cortactin and Sam68. UCS15A diered from conventional src-inhibitors in that it did not inhibit the tyrosine kinase activity of src. In addition, UCS15A appeared to dier from src-destabilizing agents such as herbimycin and radicicol that destabilize src by interfering with Hsp90. Our studies suggest that UCS15A exerted its src-inhibitory eects by a novel mechanism that involved disruption of protein-protein interactions mediated by src. One of the biological consequences of src-inhibition by UCS15A was its ability to inhibit the bone resorption activity of osteoclasts in vitro. These data suggest that UCS15A may inhibit the bone resorption activity of osteoclasts, not by inhibiting src tyrosine kinase activity, but by disrupting the interaction of proteins associated with src, thereby modulating downstream events in the src signal transduction pathway. Oncogene (2001Oncogene ( ) 20, 2068Oncogene ( ± 2079