Phosphorylation by the phosphoinositide-dependent kinase, PDK-1, is required for the activation of diverse members of the AGC family of protein kinases, including the protein kinase C (PKC) isozymes. Here we explore the subcellular location of the PDK-1-mediated phosphorylation of conventional PKCs, and we address whether this phosphorylation is regulated by phosphoinositide 3-kinase. Pulse-chase experiments reveal that newly synthesized endogenous PKC ␣ is primarily phosphorylated in the membrane fraction of COS-7 cells, where it is processed to a species that is phosphorylated at the activation loop and at two carboxyl-terminal positions. This "mature" species is then released into the cytosol. Deletion of the plekstrin homology domain of PDK-1 results in a 4-fold increase in the rate of processing of PKC indicating an autoinhibitory role for this domain. Autoinhibition by the plekstrin homology domain is not relieved by binding 3-phosphoinositides; PKC is phosphorylated at a similar rate in serumtreated cells and serum-starved cells treated with the phosphoinositide 3-kinase inhibitors, LY294002 and wortmannin. Under the same conditions, the PDK-1-catalyzed phosphorylation of another substrate, Akt/protein kinase B, is abolished by these inhibitors. Our data are consistent with a model in which PDK-1 phosphorylates newly synthesized PKC by a mechanism that is independent of 3-phosphoinositides.Phosphorylation at a segment near the active site, the activation loop, critically regulates the function of diverse members of the protein kinase superfamily. Mounting evidence suggests that for AGC kinase family members, a single kinase, the phosphoinositide-dependent kinase, PDK-1, 1 assumes this role (1, 2). Originally discovered as the upstream kinase for Akt/ protein kinase B (3), PDK-1 is now known to phosphorylate many other kinases, including PKC, p70S6 kinase, ribosomal S6 kinase, p21-activated kinase, PKC-related kinase, and serum glucocorticoid kinase (1, 2, 4). The ability to regulate the function of multiple protein kinases places PDK-1 at a pivotal point in cellular signaling. Thus, understanding how the cellular function of PDK-1 is regulated is a central question in signal transduction.Signaling by PKC has been intensely studied in the past 2 decades, spawned by the seminal discovery of Nishizuka and co-workers (5) that this member of the kinase superfamily transduces the myriad of signals that promote phospholipid hydrolysis. Yet the fact that all family members depend on a series of ordered phosphorylation events before they are competent to respond to lipid second messengers has only recently been appreciated (6, 7). The discovery that PKC isozymes are processed by phosphorylation at three conserved positions (8, 9) led to a search for an upstream kinase. This search culminated in the finding that PDK-1, discovered in 1997 as the upstream kinase for the close cousin of PKC, Akt/protein kinase B, is the activation loop kinase for conventional (10), novel, and atypical PKCs (11,12). Thus, PKC is regula...