Components of the cell cycle machinery are frequently altered in cancer. Many of these alterations affect the cyclin-dependent kinases (CDKs) and their regulation. Staurosporine and 7-hydroxystaurosporine (UCN-01) are two natural product kinase inhibitors originally identified as potent protein kinase C inhibitors. Staurosporine is non-selective and too toxic for use in therapy, but UCN-01 shows greater selectivity, and is in clinical trials. We have determined the crystal structures of staurosporine bound to monomeric CDK2 and UCN-01 bound to active phospho-CDK2/cyclin A. Both compounds mimic the hydrogen bonds made by the adenine moiety of ATP, and both exploit the non-polar nature of the adenine-binding site. In the complex with UCN-01, a hydrogen-bonded water molecule is incorporated into the non-polar cavity, which provides a partial polar character in the environment of the 7-hydroxyl group. Comparison of the ATP-binding site of CDK2 with that of other kinases reveals that in Chk1 kinase, a major target for UCN-01 in the cell, one of the surrounding residues, Ala144 in CDK2, is a serine in Chk1, thus providing a possible explanation for the effectiveness of UCN-01 against this kinase. For cells to exit mitosis, the CDKs must be completely inactivated, firstly by the ubiquintin-mediated destruction of the cyclins, followed by dephosphorylation of phospho-Thr160 (in CDK2) catalysed by the kinase-associated phosphatase and protein phosphatase 2C. We describe the structure of phospho-CDK2 in complex with kinase-associated phosphatase, and discuss the substrate recognition promoted by interactions that are remote from the catalytic site.