Phosphorylation regulates surface and synaptic expression of NMDA receptors (NMDARs). Both the tyrosine kinase Fyn and the tyrosine phosphatase striatal-enriched protein tyrosine phosphatase (STEP) are known to target the NMDA receptor subunit GluN2B on tyrosine 1472, which is a critical residue that mediates NMDAR endocytosis. STEP reduces the surface expression of NMDARs by promoting dephosphorylation of GluN2B Y1472, whereas the synaptic scaffolding protein postsynaptic density protein 95 (PSD-95) stabilizes the surface expression of NMDARs. However, nothing is known about a potential functional interaction between STEP and PSD-95. We now report that STEP 61 binds to PSD-95 but not to other PSD-95 family members. We find that PSD-95 expression destabilizes STEP 61 via ubiquitination and degradation by the proteasome. Using subcellular fractionation, we detect low amounts of STEP 61 in the PSD fraction. However, STEP 61 expression in the PSD is increased upon knockdown of PSD-95 or in vivo as detected in PSD-95-KO mice, demonstrating that PSD-95 excludes STEP 61 from the PSD. Importantly, only extrasynaptic NMDAR expression and currents were increased upon STEP knockdown, as is consistent with low STEP 61 localization in the PSD. Our findings support a dual role for PSD-95 in stabilizing synaptic NMDARs by binding directly to GluN2B but also by promoting synaptic exclusion and degradation of the negative regulator STEP 61 .PSD-95 | NMDA receptor | STEP | ubiquitination N MDA receptors (NMDARs) are ionotropic glutamate receptors that are expressed throughout the nervous system and play crucial roles in neuronal development, synaptic plasticity, and learning and memory (1-4). Functional NMDARs are heterotetrameric complexes that are composed of homologous subunits (GluN1, GluN2A-D, and GluN3A-B). Two GluN1 subunits typically combine with two GluN2 subunits, which modulate channel activity and receptor properties (5-8). GluN2A and GluN2B are the predominant GluN2 subunits in hippocampus and cortex, and the subunit composition varies during neuronal development (9)(10)(11)(12). Therefore the precise regulation of NMDAR subunit expression, composition, trafficking, and localization is critical for proper neuronal function. NMDAR activity is dynamically regulated by protein phosphorylation, e.g. NMDAR currents are potentiated by tyrosine kinases and suppressed by tyrosine phosphatases (13). In fact, GluN2B is the most prominent tyrosine phosphorylated protein within postsynaptic densities (PSDs) (14), and phosphorylation is increased during long-term potentiation (LTP) in CA1 hippocampus (15). Moreover, tyrosine phosphorylation of GluN2B has been shown to increase in several pathological conditions, including ischemia and seizures (16)(17)(18)(19).Striatal-enriched protein tyrosine phosphatase (STEP, also known as "PTPN5") is a brain-specific protein phosphatase that is expressed in the striatum, hippocampus, and cortex (20, 21). The STEP family of protein tyrosine phosphatases includes both membrane-associated [str...