The substrate specificity of the catalytic domain of SHP-1, an important re
gulator in the proliferation and development of hematopoietic cells, is cri
tical for understanding the physiological functions of SHP-1, Here we repor
t the crystal structures of the catalytic domain of SHP-1 complexed with tw
o peptide substrates derived from SIRP alpha, a member of the signal-regula
tory proteins. We show that the variable beta 6-loop-beta 6 motif confers S
HP-1 substrate specificity at the P-4 and further N-terminal subpockets. We
also observe a novel residue shift at P-2, the highly conserved subpocket
in protein-tyrosine phosphatases, Our observations provide new insight into
the substrate specificity of SHP-1.