T cell antigen receptor (TCR) engagement results in protein-tyrosine kinase activation which initiates signaling cascades leading to induction of the interleukin-2 gene. Previous studies identified two substrates of the TCR-induced protein-tyrosine kinases, SH2 domain-containing leukocyte specific protein of 76 kDa (SLP-76) and SLP-76-associated phosphoprotein of 130 kDa (SLAP-130). While SLP-76 appears to couple the TCR with downstream signals, SLAP-130 may play a negative regulatory role in T cell activation. In this study, we demonstrate that consistent with its ability to abrogate the SLP-76 augmentation of TCR-induced activation of the NFAT/AP1 region of the interleukin-2 promoter, overexpression of SLAP-130 also interferes with the rescue of signaling in SLP-76-deficient Jurkat cells in co-transfection experiments. The effect of SLAP-130 on SLP-76 function is specific for regulating TCR-induced ERK activation, but not phospholipase Cgamma 1 phosphorylation. By generating both deletion and point mutants of SLAP-130, we identified tyrosine 559 as critical for the interaction between SLP-76 and SLAP-130. We show that mutation of this residue in context of full-length SLAP-130 diminishes the ability of SLAP-130 to abrogate SLP-76 function. These data suggest that the SLAP-130/SLP-76 association is important for the negative regulatory role that SLAP-130 appears to play in T cell signaling.