A heterologous substrate assay for the human immunodeficiency virus type 1 (HIV-1) protease has been engineered in Escherichia coli. This assay detects the activity of the HIV-1 protease within intact bacterial cells and does not require biochemical purification of either the enzyme or the substrate. For this assay, nine HIV-1 protease specificity sites were genetically engineered into a heterologous protein (galactokinase) and the relative processing of these substrates by the wild-type and a substituted HIV-1 protease was determined. The results from these experiments revealed that the activity of the HIV-1 protease in the engineered heterologous substrate assay is consistent with previously reported in vitro assays and in vivo observations as well as a proposed catalytic specificity model.