Several peptide hormones are initially synthesized as inactive precursors. It is only on entry of these prohormones and their processing proteases into dense core secretory granules (DCSGs) that the precursors are cleaved to generate their active forms. Prohormone convertase (PC)1/3 is a processing protease that is targeted to DCSGs. The signal for targeting PC1/3 to DCSGs resides in its carboxy-terminal tail (PC1/3 617-753), where 3 regions (PC1/ 3 617-625, PC1/3665-682, and PC1/3711-753) are known to aid in sorting and membrane association. In this article, we have determined a high-resolution structure of the extreme carboxy-terminal sorting domain, PC1/3 711-753 in micelles by NMR spectroscopy. PC1/3711-753 contains 2 alpha helices located between residues 722-728 and 738 -750. Functional assays demonstrate that the second helix (PC1/3 738 -750) is necessary and sufficient to target a constitutively secreted protein to granules, and that L 745 anchors a hydrophobic patch that is critical for sorting. Also, we demonstrate that calcium binding by the second helix of PC1/3 711-753 promotes aggregation of the domain via the hydrophobic patch centered on L 745 . These results provide a structure-function analysis of a DCSG-sorting domain, and reveal the importance of a hydrophobic patch and calcium binding in controlling the sorting of proteins containing alpha helices to DCSGs.NMR ͉ prohormone convertases D ense core secretory granules (DCSGs) are a repository of proteases and hormones in endocrine and neuroendocrine cells. Many of these proteins are first synthesized as precursors that are activated by protease cleavage after the precursor enters the nascent secretory granules (1-3). The processed proteins are stored within the DCSGs and released when the cell receives the correct stimulus (4). This regulated secretory pathway differs from the pathway of constitutive protein secretion, where proteins are packaged in low-density vesicles and released in an unregulated manner. Thus, the targeting of the protein precursors and their processing enzymes to DCSGs is critical to ensure the secretion of protein hormones such as insulin, glucagon and proteases such as renin.Two models have been postulated to explain protein sorting to DCSGs (5). The 'sorting by entry' model postulates that proteins are triaged at the trans Golgi network (TGN) via a proteinreceptor interaction and proteins interacting with this receptor are diverted into the regulated pathway. A second model is 'sorting by retention' where all proteins, regardless of their final destination, enter an immature secretory granule from which proteins destined for constitutive secretion or targeted to other organelles would be extruded while proteins destined to be stored in the mature DCSG for regulated release would be selectively retained. Nascent granules mature through a process that involves immature granule fusion, acidification, increased calcium content and prohormone processing and condensation (1). Regardless of how DCSG-resident proteins are selec...