Photoactivation of the retinal photoreceptor rhodopsin proceeds through a cascade of intermediates, resulting in protein-protein interactions catalyzing the activation of the G-protein transducin (Gt). Using stabilization and photoregeneration of the receptor's signaling state and Gt activation assays, we provide evidence for a two-site sequential fit mechanism of Gt activation. We show that the C-terminal peptide from the Gt ␥-subunit, Gt␥(50-71)farnesyl, can replace the holoprotein in stabilizing rhodopsin's active intermediate metarhodopsin II (MII). However, the peptide cannot replace the Gt␥ complex in direct activation assays. Competition by Gt␥(50-71)farnesyl with Gt for the active receptor suggests a pivotal role for Gt␥ in signal transfer from MII to Gt. MII stabilization and competition is also found for the C-terminal peptide from the Gt ␣-subunit, Gt␣(340-350), but the capacity of this peptide to interfere in MII-Gt interactions is paradoxically low compared with its activity to stabilize MII. Besides this disparity, the pH profiles of competition with Gt are characteristically different for the two peptides. We propose a two-site sequential fit model for signal transfer from the activated receptor, R*, to the G-protein.In the center of the model is specific recognition of conformationally distinct sites of R* by Gt␣(340-350) and Gt␥(50-71)farnesyl. One matching pair of domains on the proteins would, on binding, lead to a conformational change in the G-protein and͞or receptor, with subsequent binding of the second pair of domains. This process could be the structural basis for GDP release and the formation of a stable empty site complex that is ready to receive the activating cofactor, GTP.Rhodopsin is a prototypical G-protein-coupled receptor in retinal rods (1, 2). Available information supports a mechanism in which the initial isomerization of the chromophore 11-cis-retinal, and thus the formation of the agonistic all-transretinal, leads to crucial contacts between the ligand and the apoprotein opsin. These steric constraints result in a defined arrangement of donor and acceptor groups for proton translocations leading to subsequent tautomeric conformations of the receptor, identified as ''metarhodopsin'' photointermediates, each with a characteristic absorption spectrum. Metarhodopsin I (MI, max ϭ 478 nm) is in a pH-and temperaturedependent equilibrium with metarhodopsin II (MII, max ϭ 380 nm), distinguished by its deprotonated Schiff base linkage [and broken salt bridge (3, 4)] between the retinal and Lys 296 . MII has been shown to catalyze retina rod cell-specific Gprotein (Gt) activation through nucleotide exchange (5, 6).Despite recent progress in structure determination of both Gt and rhodopsin, the molecular mechanism of signal transfer between the two proteins is poorly understood. Interacting surfaces of rhodopsin and Gt include intracellular loops of the receptor and domains on both Gt ␣-and Gt ␥-subunits (1, 7-9). C-terminal domains of Gt ␣-and Gt ␥-subunits, Gt␣(340-350) and...