Our understanding of the ways in which peptides are used for communication in the nervous and endocrine systems began with the identification of oxytocin, vasopressin and insulin, each of which is stored in electron dense granules, ready for release in response to an appropriate stimulus. For each of these peptides, entry of its newly synthesized precursor into the endoplasmic reticulum lumen is followed by transport through the secretory pathway, exposing the precursor to a sequence of environments and enzymes that produce the bioactive products stored in mature granules. A final step in the biosynthesis of many peptides is C-terminal amidation by Peptidylglycine -Amidating Monooxygenase (PAM), an ascorbate-and copper-dependent membrane enzyme that enters secretory granules along with its soluble substrates. Biochemical and cell biological studies elucidated the highly conserved mechanism for amidated peptide production and raised many questions about PAM trafficking and the effects of PAM on cytoskeletal organization and gene expression. Phylogenetic studies and the discovery of active PAM in the ciliary membranes of Chlamydomonas reinhardtii, a green alga lacking secretory granules, suggested that a PAM-like enzyme was present in the last eukaryotic common ancestor. While the catalytic features of human and C. reinhardtii PAM are strikingly similar, the trafficking of PAM in C. reinhardtii and neuroendocrine cells and secretion of its amidated products differ. A comparison of PAM function in neuroendocrine cells, atrial myocytes and C. reinhardtii reveals multiple ways in which altered trafficking allows PAM to accomplish different tasks in different species and cell-types.This article is protected by copyright. All rights reserved encoding their precursors revealed the importance of post-translational processing in the production of bioactive peptides [5,6]. With the identification of COOH-terminal amidation as a critical step in the synthesis of peptides like vasopressin, oxytocin, neuropeptide Y, cholecystokinin and -melanocyte stimulating hormone, searches for an amidating enzyme began [7][8][9]. The sequencing of cDNAs encoding the prepropeptides for amidated peptides indicated that each amidated peptide was produced from a precursor with a COOH-terminal glycine.Using bovine and rodent pituitaries, a soluble monooxygenase that converted peptidylglycine substrates into amidated products, peptidylglycine -hydroxylating monooxygenase (PHM; E.C. 1.14.17.3), was identified and shown to require copper and ascorbic acid (Fig. 1A) [9]. The purification of soluble, ~40 kDa PHM led to the expression cloning of a cDNA that encoded a 110 kDa Type I integral membrane protein that included an NH 2terminal signal sequence followed by PHM (Fig. 1A) [10]. With a cDNA in hand, it quickly became apparent that the luminal region of this membrane protein included two catalytic activities, PHM and peptidyl-hydroxyglycine -amidating lyase (PAL; E.C. 4.3.2.5) (Fig. 1A) [7,11]. Under the slightly acidic conditions encountere...