Unlike trypsins, chymotrypsins have not until now been found in fungi. Expressed sequence tag analysis of the deuteromycete Metarhizium anisopliae identified two trypsins (family S1) and a novel chymotrypsin (CHY1). CHY1 resembles actinomycete (bacterial) chymotrypsins (family S2) rather than other eukaryote enzymes (family S1) in being synthesized as a precursor species (374 amino acids, pI/MW: 5.07/38,279) containing a large N-terminal fragment (186 amino acids). Chy1 was expressed in Pichia pastoris yielding an enzyme with a chymotrypsin specificity for branched aliphatic and aromatic C-terminal amino acids. This is predictable as key catalytic residues determining the specificity of Streptomyces griseus chymotrypsins are conserved with CHY1. Mature (secreted) CHY1 (pI/MW: 8.29/18,499) shows closest overall amino acid identity to S. griseus protease C (55%) and clustered with other secreted bacterial S2 chymotrypsins that diverged widely from animal and endocellular bacterial enzymes in phylogenetic trees of the chymotrypsin superfamily. Conversely, actinomycete chymotrypsins are much more closely related to fungal proteases than to other eubacterial sequences. Complete genomes of yeast, gram eubacteria, archaebacteria, and mitochondria do not contain paralogous genes. Expressed sequence tag data bases from other fungi also lack chymotrypsin homologs. In light of this patchy distribution, we conclude that chy1 probably arose by lateral gene transfer from an actinomycete bacterium.Proteases of the chymotrypsin superfamily, which includes the pancreatic chymotrypsins, trypsins, and elastases (chymotrypsin family S1) and the bacterial lytic endopeptidases (chymotrypsin family S2) possess an active site serine that attacks the scissile peptide bond (1). Such stereotypical chymotrypsin superfamily proteases as chymotrypsin itself and protease A (Streptomyces griseus) are synthesized as preproenzymes and are secreted to act extracellularly, although endocellular forms are also known. They play a role in cancer and other diseases, and they have a diverse array of important functions, including digestion and degradative processes, blood coagulation, fibrinolysis, cellular and humoral immunity, embryonic development, and fertilization (2), that underscore the need to better understand how these enzymes have become adapted to diverse activities. Most chymotrypsin-like enzymes and their associated functions are confined to animals, which suggests that the responsible enzymes arose in the ancestor of that lineage. However there are a few prokaryotic systems and lower eukaryotes in which to study the evolution and divergence of the chymotrypsin superfamily.