Engagement of 1 integrin receptors initiates an increase in intracellular calcium concentrations in T cells, potentially affecting calcium-sensitive signaling pathways. The calcium-activated cysteine protease, calpain, regulates a variety of cell functions by calcium-dependent limited proteolysis. To investigate the function of calpain in T cells, we sought to determine the role of this protease in calcium-dependent signaling events. Subsequent to elevations in intracellular calcium concentrations induced by ionomycin or adherence to fibronectin, calpain activity translocated to the cytoskeletal/membrane fraction of T cells. In addition, stimulation of T cells with these agents initiated the proteolytic cleavage of protein tyrosine phosphatase 1B by calpain. Enzymatic cleavage of protein tyrosine phosphatase 1B occurs near the endoplasmic reticulum-targeting sequence and results in the generation of an enzymatically active form of the phosphatase. Furthermore, we show that both the native and the cleaved forms of protein tyrosine phosphatase 1B interact with p130Cas in T cells. This interaction may serve to relocate protein tyrosine phosphatase 1B to sites of focal contact resulting in potential interactions with substrates previously inaccessible to the endoplasmic reticulum-associated phosphatase. Thus, we describe a novel calcium-dependent signaling pathway in T cells that may mediate signals generated by 1 integrin adherence to the extracellular matrix.Calpain (calcium-activated cysteine protease; EC 3.4.22.17) is ubiquitously expressed in mammalian cells, yet its precise physiologic function in T cells remains to be determined. The majority of calpain is localized in the cytosol of cells (1-4). However, raising intracellular calcium concentrations ([Ca 2ϩ ] i ) 1 in cells induces calpain translocation to the plasma membrane, the cytoskeleton, and points of attachment between cells and the extracellular matrix (ECM) (5-9). Furthermore, interactions between integrins and ECM proteins in some cell types, induces the translocation and activation of calpain in response to elevated [Ca 2ϩ ] i (5, 10 -12). Calpain can induce the proteolytic modification of proteins associated with multiple signaling cascades, such as protein kinase C, phospholipase C, pp60Src , and focal adhesion kinase (13-16) as well as the limited proteolysis of cytoskeletal proteins including talin, actinbinding protein, and paxillin (17-19). Thus, calpain is implicated in cytoskeletal reorganization as well as signal transduction pathways in response to elevations in [Ca 2ϩ ] i . This suggests that calpain has a crucial role in integrin-induced alterations in cellular physiology and function. Interaction of integrins with their ligands activates cellular signaling pathways and reorganization of the cytoskeletal system (20 -24). An increase in [Ca 2ϩ ] i represents one second messenger that is quantitatively altered as a consequence of these interactions. This would further suggest the possibility that calpain is activated b...