Carboxypeptidase Y was treated under different conditions with various reagents in order to chemically modify amino acid side-chains located in the S~ binding site. Treatment of carboxypeptidase Y with H202 in phosphate buffer caused a reduction in the peptidase activity towards FA-Phe-~Leu-OH to 25 % of the control while the esterase activity towards FA-Phe-~OMe, the amidase activity towards FA-Phe~-NH2 and the peptidyl amino acid amide hydrolase activity towards FA-Phe-~GIy-NH2 were much less affected. The loss of peptidase activity could be correlated with the oxidation of a single methionyl residue, thus forming a methionyl sulfoxide derivative. When the reaction was performed in acetate buffer under otherwise identical conditions an additional methionyl residue was oxidized with the result that all activities of the enzyme increased while the heat stability of the enzyme decreased drastically.'4C-Fluorodinitrobenzene influenced the activities of carboxypeptidase Y in a manner similar to that observed with H,_O2 in phosphate buffer. The loss ofpeptidase activity could be correlated with the incorporation of a single equivalent of reagent as an O-DNP-tyrosyl derivative.The carboxypeptidase Y derivatives containing a single methionyl sulfoxide residue or an O-DNP-tyrosyl residue both exhibited altered specificity with respect to the P; position of the substrate. These results indicate that both the methionyl residue and the tyrosyl residue are located in the S; binding site.