The biologically active portion of the thyroid-stimulating immunoglobulin (TSI/LATS) molecule is in the Fd portion of the heavy (H) chain. Radioiodination of TSI/LATS by the chloramine T method or contact with the oxidant only results in reduction and/or abolition of its biological activity in vivo. We have found that such treatment also results in a loss of thyroid membrane adenylate cyclase stimulatory activity. We have devised a method for labeling TSI which circumvents contact of the H chain with oxidant or radioiodine.The H and L chains of TSI were separated by mild reduction, alkylation, and gel filtration in 1 M propionic acid. The separated TSI H chains were then mixed with K-type Bence-Jones L chains (molar ratio, 1:2) which had been previously iodinated by 125 I (*L) or I27 I (°L), and IgG was reconstituted by dialysis of the mixture in 10 DIM sodium acetate buffer, pH 5.5. IgG was then separated from free H and L chains by gel filtration. The IgG (*L-TSI or °L-TSI) thus contained iodinated L chains, whereas all of the unlabeled H chains were from the original TSI source. After incubation of *L-TSI with human thyroid membranes for 3 h at 37 C in 10 IDM Tris-HCl buffer, pH 7.4, containing 30 RIM NaCl and 0.5% bovine serum albumin, 1-2% was specifically bound to membranes. This binding could be inhibited by unlabeled TSI and bovine TSH. Both °L-TSI and native TSI stimulated thyroid membrane adenylate cyclase and inhibited [ I25 I]bovine TSH binding to membranes in a dose-related fashion; however, native TSI which was iodinated directly no longer had either property.The following conclusions were reached. 1) These experiments provide direct evidence that TSI binds to TSH receptors on thyroid cell membranes and stimulates adenylate cyclase activity. 2) The method offers the potential to obtain membrane-purified and radiolabeled TSI for further biochemical, physiological, and clinical studies. (Endocrinology 103: 296, 1978) T HE BIOLOGICAL activity of thyroidstimulating immunoglobulins (TSI/ LATS) of Graves' disease is absorbed by incubation with human thyroid homogenates (1), and the suggestion was made that it might be an antibody to a thyroidal cell component. The demonstration that TSI inhibits the binding of 125 I-labeled bovine TSH (bTSH) to human thyroid membranes (2) provided support for the view that TSI mimics the behavior of the physiological stimulator of the thyroid by interacting with the TSH-receptor. Both