Conventional mode of activation of SH2 domain-containing phosphatase 1 (SHP-1) by a single transmembrane (TM) inhibitory receptor such as killer cell inhibitory receptor, Fc␥ receptor type IIb1, and paired Ig-like receptors of inhibitory types requires tyrosine phosphorylation of immunoreceptor tyrosine-based inhibitory (ITIM) motifs in the cytoplasmic domains of the inhibitory receptors. Contrary to this paradigm, AT 2, a G protein-coupled 7TM receptor that does not undergo tyrosine phosphorylation in response to angiotensin II (Ang II) stimulation, also activates SHP-1. Here we show that SHP-1 constitutively and physically associates with AT2 receptor in transfected COS-7 cells. On stimulation by Ang II, SHP-1 becomes activated and dissociated from AT2 receptor, independent of pertussis toxin. Cotransfection of transducin G␥ inhibits SHP-1͞AT2 association and the SHP-1 activation, whereas cotransfection of C-terminal of -adrenergic receptor kinase, which abrogates G ␥ signaling, facilitates SHP-1 activation. Surprisingly, SHP-1͞AT2 association and the SHP-1 activation requires the presence of G␣s as shown by differential coimmunoprecipitation, dominant negative G␣s, constitutively active G␣s, and G␣ peptides. A mutant AT2 receptor D141A-R142L that is inactive in G␣ protein activation constitutively associates with SHP-1 and activates it. Together, these results indicate that G␣s alone, rather than exclusively in the form of G␣␥ heterotrimer may facilitate signal transduction for G protein-coupled receptors, suggesting a novel mechanism distinct from the classic paradigm of heterotrimeric G proteins. The AT2-mediated ITIM-independent activation of SHP-1 that is distinct from the conventional mode of activation, may represent a general paradigm for activation of SHP-1͞2-class tyrosine phosphatases by G protein-coupled receptors.GPCR ͉ signal transduction T he G protein-coupled receptors (GPCR) AT 1 and AT 2 are the two major subtypes that transduce signals for angiotensin II (Ang II), a potent vasoactive octapeptide (Asp 1 -Arg 2 -Val 3 -Tyr 4 -Ile 5 -His 6 -Pro 7 -Phe 8 ) and a growth factor. Activation of AT 1 and AT 2 receptors by Ang II results in opposing actions of stimulation and inhibition. The AT 1 -mediated stimulatory actions as well as signal transductions are well documented, whereas the AT 2 -mediated inhibitory actions and signal transductions remain poorly understood (1-4). Most recently, studies have shown that the AT 2 receptor not only couples to pertusis toxin (PTX)-sensitive G i␣2 and G i␣3 proteins (5), but also activates a SH2 domain-containing tyrosine phosphatase (SHP-1) (5-10). Deletion or alanine substitutions of residues 240-244 within the intermediate portion of the cytoloop 3 has been shown to result in a complete loss of AT 2 -mediated apoptosis, inhibition of extracellular signal-regulated kinases, and SHP-1 activation (10).SHP-1, an intracellular protein tyrosine phosphatase (PTPase) containing two SH2 domains at the N-terminal end, plays a central role in blocking cell activ...