In order for cells to respond to their environment, a series of regula
ted molecular events has to take place. External signalling molecules
bind to cellular receptors and thereby trigger the activation of multi
ple intracellular pathways, which modify cellular phenotypes. The cell
-surface receptors for a wide range of polypeptide hormones possess pr
otein tyrosine kinase activity, which is induced by binding of the app
ropriate extracellular ligand. Tyrosine phosphorylation can act as a m
olecular switch, by initiating the recruitment of cytoplasmic effector
molecules containing Src homology (SH) 2 domains, to activated recept
ors. These SH2-containing proteins, in turn, regulate intracellular si
gnalling pathways. Here, we discuss the role of tyrosine phosphorylati
on in triggering signalling pathways, as well as the functions of SH2
domains, which mediate these events through phosphotyrosine-dependent
protein-protein interactions.