To test the hypothesis that factor Xa (fXa) interacts with protein S, fXa was labeled active-site specifically with a dansyl (D) dye via a Glu-Gly-Arg (EGR) tether to yield DEGR-fXa i . When protein S was added to phosphatidylcholine/phosphatidylserine (PC/PS, 4:1) vesicle-bound DEGR-fXa i , the anisotropy of the dansyl moiety was altered from 0.219 ؎ 0.002 to 0.245 ؎ 0.003. This change in dansyl anisotropy was not observed when DEGR-Xa i was titrated with protein S in the absence of PC/PS vesicles, or in the presence of 100% PC vesicles, or when PC/PS vesicle-bound DEGR-fXa i was titrated with thrombin-cleaved protein S. The protein S-dependent dansyl fluorescence change was specific for fXa because it was not observed for two homologous and similarly labeled DEGRfIXa i and DEGR-fVIIa i . Furthermore, protein S specifically and saturably altered the fluorescence anisotropy of PC/PS-bound active site-labeled LWB-FPR-fXa i (K d ؍ 33 nM) and was photocross-linked to PC/PS-bound LWB-FPR-fXa i analog, independently confirming the above results. Chemically synthesized microprotein S, comprising residues 1-116 of protein S and including the ␥-carboxyglutamic-rich domain, the thrombin-sensitive region (TSR), and the first epidermal growth factor-like domain (EGF1) of protein S, altered the anisotropy of PC/PS-bound DEGRfXa i from 0.219 to 0.242, similar to the effect of the protein S titration (K d ؍ 303 nM), suggesting that microprotein S binds to DEGRfXa i . To identify individual protein S domain(s) that binds DEGR-fXa i , the EGF1 and TSR domains were chemically synthesized and studied. The TSR altered the anisotropy of DEGRfXa i by ϳ16% (K d ؍ 3.9 M), but the EGF1 domain had no effect on the signal. In controls, the TSR domain did not alter the anisotropy of DEGR-fIXa i and DEGR-fVIIa i , respectively. These data demonstrate that membrane-bound fXa binding to protein S involves the TSR of protein S.Protein S is known as a non-enzymatic cofactor of activated protein C in the inactivation of factors Va (fVa) 2 and VIIIa, as part of a negative feedback loop to regulate coagulation (1). Plasma coagulation assays in the absence of activated protein C suggest that protein S may have other anticoagulant role(s) in the absence of activated protein C (2, 3). Consistent with this notion, other anticoagulant functions have been ascribed to protein S that are independent of activated protein C and that we will term here as "protein S direct." For example, it has been proposed that protein S can inhibit the generation of thrombin by the prothrombinase (fXa⅐fVa⅐phospholipid) complex (4) by forming a complex with fXa and fVa. Recently, it has been suggested that protein S down-regulates thrombin generation by stimulating fXa inhibition by the tissue factor pathway inhibitor (5, 6). The molecular interactions responsible for these effects are as yet not understood. Protein S is a multi-modular vitamin K-dependent plasma protein of 635 amino acids (1). The N-terminal end of the mature protein is rich in ␥-carboxyglutamic aci...