Secretory proteins are synthesized with a signal sequence that is usua
lly cleaved from the nascent protein during the translocation of the p
olypeptide chain into the lumen of the endoplasmic reticulum. To deter
mine the fate of a cleaved signal sequence, we used a synchronized in
vitro translocation system. Fire found that the cleaved signal peptide
of preprolactin is further processed close to its COOH terminus. The
resulting fragment accumulated in the microsomal fraction and with tim
e was released into the cytosol. Signal sequence cleavage and processi
ng could be reproduced with reconstituted vesicles containing Sec61, s
ignal recognition particle receptor, and signal peptidase complex.