Previously, we reported that proteasomes (large multi-protease complexes) are present in a latent state in a variety of eukaryotic cells, and can be activated by treatment with various compounds such as sodium dodecyl sulfate (SDS) or poly-lysine (Tanaka et al. (1988) J. Biol. Chem. 263, 16209-16217). In the present study, the mechanism of activation of latent proteasomes by SDS was examined. Latent proteasomes were greatly activated by addition of low concentrations of 0.04 to 0.08% SDS in the presence of substrate. This activation appeared to be reversible, because SDS-activated proteasomes returned to a latent state when the concentration of SDS was reduced by dilution. In contrast, in the absence of substrate, latent proteasomes lost their activity almost completely in an irreversible fashion within a few minutes during treatment with SDS at either 0 or 37 degrees C. Interestingly, SDS-treated proteasomes were markedly protected against this rapid inactivation by either a peptide or protein substrate. Moreover, removal of the substrate after activation of proteasomes caused their rapid irreversible inactivation. These results indicate that the substrate is necessary for reversible activation of latent proteasomes by SDS. This effect of substrate is presumably important in regulation of intracellular protein breakdown by activated proteasomes in eukaryotic cells.