Phosphoinositide second messengers, generated from the action of phosphoinositide 3-kinase (PI3K), mediate an array of signaling pathways through the membrane recruitment and activation of downstream effector proteins. Although pleckstrin domains of many target proteins have been shown to bind phosphatidylinositol 3,4,5-trisphosphate (PIP 3 ) and/or phosphatidylinositol 3,4-bisphosphate (PI(3,4)P 2 ) with high affinity, published data concerning the phosphoinositide binding specificity of Src homology 2 (SH2) domains remain conflicting. Using three independent assays, we demonstrated that the C-terminal (CT-)SH2 domain, but not the N-terminal SH2 domain, on the PI3K p85␣ subunit displayed discriminative affinity for PIP 3 . However, the binding affinity diminished precipitously when the acyl chain of PIP 3 was shortened. In addition, evidence suggests that the charge density on the phosphoinositol ring represents a key factor in determining the phosphoinositide binding specificity of the CT-SH2 domain. In light of the largely shared structural features between PIP 3 and PI(4,5)P 2 , we hypothesized that the PIP 3 -binding site on the CT-SH2 domain encompassed a sequence that recognized PI(4,5)P 2 . Based on a consensus PI(4,5)P 2 -binding sequence (KXXXXXKXKK; K denotes Arg, Lys, and His), we proposed the sequence 18 RNKAENLLRGKR 29 as the PIP 3 -binding site. This binding motif was verified by using a synthetic peptide and site-directed mutagenesis. More importantly, neutral substitution of flanking Arg 18 and Arg 29 resulted in a switch of ligand specificity of the CT-SH2 domain to PI(4,5)P 2 and PI(3,4)P 2 , respectively. Together with computer modeling, these mutagenesis data suggest a pseudosymmetrical relationship in the recognition of the phosphoinositol head group at the binding motif.Substantial evidence indicates that the lipid products of phosphoinositide 3-kinase (PI3K 1 ), phosphatidylinositol 3,4,5-trisphosphate (PIP 3 ) and phosphatidylinositol 3,4-bisphosphate (PI(3,4)P 2 ), facilitate transmembrane signaling, in part, by serving as membrane-localization elements to recruit target proteins to specific sites (1, 2). Among various targets reported for these lipid second messengers, a series of signaling proteins containing Src homology 2 (SH2) or pleckstrin homology (PH) domains are of particular interest in light of their role in signal transduction (SH2 domains (3, 4); PH domains (5-12)). Conceivably, understanding the mode of this unique phosphoinositide recognition will shed light on the mechanism by which PI3K regulates downstream signaling pathways. Although recent investigations demonstrate that distinct PH domains have evolved selectivity for different phosphoinositides to provide discriminatory regulation (5), data pertaining to the interactions between SH2 domains and PIP 3 are conflicting (3, 13). It has been proposed that PIP 3 binds selectively to the p85 Cterminal (CT-)SH2 domain of PI3K, thereby blocking the binding of p85 to tyrosine-phosphorylated proteins (3). This model, however,...