Incubation of rat hepatoma Fao cells with insulin leads to a transient rise in Tyr phosphorylation of insulin receptor substrate (IRS) proteins. This is followed by elevation in their P-Ser/Thr content, and their dissociation from the insulin receptor (IR). Wortmannin, a phosphatidylinositol 3-kinase (PI3K) inhibitor, abolished the increase in the P-Ser/Thr content of IRS-1, its dissociation from the IR, and the decrease in its P-Tyr content following 60 min of insulin treatment, indicating that the Ser kinases that negatively regulate IRS-1 function are downstream effectors of PI3K. PKC fulfills this criterion, being an insulin-activated downstream effector of PI3K. Overexpression of PKC in Fao cells, by infection of the cells with adenovirus-based PKC construct, had no effect on its own, but it accelerated the rate of insulin-stimulated dissociation of IR⅐IRS-1 complexes and the rate of Tyr dephosphorylation of IRS-1. The insulin-stimulated negative regulatory role of PKC was specific and could not be mimic by infecting Fao cells with adenoviral constructs encoding for PKC ␣, ␦, or . Because the reduction in P-Tyr content of IRS-1 was accompanied by a reduced association of IRS-1 with p85, the regulatory subunit of PI3K, it suggests that this negative regulatory process induced by PKC, has a built-in attenuation signal. Hence, insulin triggers a sequential cascade in which PI3K-mediated activation of PKC inhibits IRS-1 functions, reduces complex formation between IRS-1 and PI3K, and inhibits further activation of PKC itself. These findings implicate PKC as a key element in a multistep negative feedback control mechanism of IRS-1 functions.The insulin receptor mediates insulin action through the phosphorylation of substrate proteins on Tyr residues (1-3). The major substrates of the insulin receptor kinase are Shc (4) and the IRS 1 family of proteins, IRS-1 (5), IRS-2 (6), IRS-3 (7), and IRS-4 (8). IRS proteins contain a conserved PH (pleckstrin homology) domain (9, 10) located at the amino terminus, adjacent to a phosphotyrosine binding (PTB) domain. The PTB domain is present in a number of signaling molecules (11) and shares 75% sequence identity between IRS-1 and IRS-2 (12). This domain interacts with the NPXY motif of the juxtamembrane region of IR and promotes IR-IRS-1 interaction (13-15).The carboxyl-terminal region of IRS proteins is poorly conserved. It contains multiple tyrosine phosphorylation motifs that serve as docking sites for SH2 (Src homology-2) domaincontaining proteins like the p85␣ regulatory subunit of PI3K, Grb2, Nck, Crk, Fyn, and SHP-2, which mediate the metabolic and growth-promoting functions of insulin (1-3). IRS proteins contain more than 70 potential Ser/Thr phosphorylation sites for kinases like PKA (cAMP-dependent protein kinase), PKC, and MAPK (5, 6, 16). The phosphorylation of Ser/Thr residues of IRS proteins has a dual function, serving either for a positive or negative modulation of insulin signal transduction. Phosphorylation of Ser residues within the PTB domain of IRS-1 by ...