Aspergilloglutamic peptidase (formerly called aspergillopepsin II) is an acid endopeptidase produced byAspergillus niger var. macrosporus, with a novel catalytic dyad of a glutamic acid and a glutamine residue, thus belonging to a novel peptidase family G1. The mature enzyme is generated from its precursor by removal of the putative 41-residue propeptide and an 11-residue intervening peptide through autocatalytic activation. In the present study, the propeptide (Ala 1 -Asn 41 ) and a series of its truncated peptides were chemically synthesized, and their effects on the enzyme activity and thermal stability were examined to identify the sequences and residues in the propeptide most critical to the inhibition and thermal stabilization. The synthetic propeptide was shown to be a potent competitive inhibitor of the enzyme (K i ؍ 27 nM at pH 4. Propeptides are known to be present in many protein precursors mostly at their N termini and are assumed to play various roles in the proteins such as inhibition of protein functions, stabilization of precursor structures, promotion of polypeptide folding, and/or intercellular protein sorting and targeting (1-6). These roles, however, have not yet been fully understood, and further studies on various proteins are necessary. As for the inhibitory properties of the propeptides of peptidases, there are numbers of reports describing their inhibition profiles and type of inhibition (7-25). However, only a few attempts have been made so far to identify critical sequences and/or residues in the propeptide important for inhibition of the corresponding mature peptidase, and much of the inhibition mechanisms, the structural determinants in the propeptide, and the sites of binding involved in the inhibition remains to be established. On the other hand, there are few studies that analyzed the effects of propeptide and its truncated fragments on the stability of the mature enzyme to identify critical sequences and/or residues contributing to the enzyme stability.Aspergilloglutamic peptidase (AGP 1 ; MEROPS ID: G01.002; formerly called aspergillopepsin II) is a pepstatin-insensitive acid endopeptidase produced by the fungus Aspergillus niger var. macrosporus (26). Like scytalidoglutamic peptidase (or eqolisin; MEROPS ID: G01.001; formerly called scytalidopepsin B) (27, 28), AGP also belongs to the newly established family of glutamic peptidases (i.e. peptidase family G1). The enzyme has two essential residues, a glutamic acid and a glutamine residue, at the active site (29 -32), which is thought to form a catalytic dyad, and is not inhibited by any of the known inhibitors for aspartic, cysteine, metallo-, and serine peptidases. The enzyme is synthesized as a 282-residue preproenzyme, and after removal of the 18-residue putative signal peptide, the proform is converted autocatalytically to the twochain mature enzyme (composed of a 39-residue light chain and a 173-residue heavy chain) by liberation of the putative 41-residue propeptide (Ala 1 -Asn 41 ) and the 11-residue intervening peptide...