Protein prenyltransferases catalyze the covalent attachment of isoprenoid lipids (farnesyl or geranylgeranyl) to a cysteine near the C terminus of their substrates. This study explored the specificity determinants for interactions between the farnesyltransferase of Saccharomyces cerevisiae and its protein substrates. A series of substitutions at amino acid 149 of the farnesyltransferase -subunit were tested in combination with a series of substitutions at the C-terminal amino acid of CaaX protein substrates Ras2p and a-factor. Efficient prenylation was observed when oppositely charged amino acids were present at amino acid 149 of the yeast farnesyltransferase -subunit and the C-terminal amino acid of the CaaX protein substrate, but not when like charges were present at these positions. This evidence for electrostatic interaction between amino acid 149 and the C-terminal amino acid of CaaX protein substrates leads to the prediction that the C-terminal amino acid of the protein substrate binds near amino acid 149 of the yeast farnesyltransferase -subunit.Biological activity of various proteins, including Ras, lamin B, and yeast a-factor mating pheromone, requires covalent attachment of a 15 carbon prenyl lipid (farnesyl) by protein farnesyltransferase. A related enzyme, protein geranylgeranyltransferase-I, transfers a 20 carbon prenyl lipid (geranylgeranyl) to numerous proteins, including the Ras-related Rho, Rac, and Cdc42 proteins. Both farnesyltransferase and geranylgeranyltransferase-I function as heterodimers; they share an ␣-subunit but have distinct -subunits, which are only 33% identical. Both enzymes catalyze the attachment of a prenyl lipid to a cysteine four amino acids from the C terminus of the protein substrate. The preferred substrates of the mammalian and yeast farnesyltransferases have serine, methionine, cysteine, glutamine, or alanine in the C-terminal position (1-3) and are often referred to as CaaX proteins, where C is cysteine, a is usually an aliphatic amino acid, and X is the C-terminal amino acid. The preferred substrates of the mammalian and yeast geranylgeranyltransferase-I usually have leucine in the C-terminal position (1,(3)(4)(5)(6)(7)(8) and are often referred to as CaaL proteins. Farnesyltransferase and geranylgeranyltransferase-I exhibit a degree of cross-specificity for both lipid (3, 9-11) and protein (3,6,7,(12)(13)(14) substrates.The discovery that the Ras oncoprotein required farnesylation for function (15, 16) prompted intensive studies of farnesyltransferase, in large part because inhibitors of farnesyltransferase may prove to be effective for anti-cancer therapy (17). Despite the recent observation that both farnesyltransferase and geranylgeranyltransferase-I can efficiently prenylate K-rasB in vitro (14), and presumably in vivo, farnesyltransferase-specific inhibitors slow growth of K-rasB tumors in mice (18-24). Suprisingly, geranylgeranyltransferase-I-specific inhibitor (25) can also reverse the transformed phenotypes conferred by activated K-rasB. These pro...