Parathyroid hormone-related protein (PTHrP) is an important causal factor of hypercalcemia associated with malignancy. PTHrP also modulates cell growth and differentiation of normal cells through mechanisms that include binding to cell surface-specific receptors as well as by possible intracellular routes. To understand the regulation of intracellular PTHrP expression, post-translational processing of PTHrP was investigated. Using cell-free translations it was shown that PTHrP can be ligated efficiently to multiple ubiquitin moieties. Both conjugation to ubiquitin and degradation of prepro-PTHrP synthesized in vitro were ATP-dependent. Translation in vitro in the presence of the proteasome inhibitor MG-132 abolished the degradation of PTHrP. Treatment of cells, cotransfected with hemagglutinin-tagged ubiquitin and histidine-tagged prepro-PTHrP, with MG-132, led to the accumulation of ubiquitinated prepro-PTHrP. Deletion mutagenesis experiments indicated that both the prepro secretory domain and a PEST (amino acid residues Pro (P), Glu (E), and/or Asp (D), Ser (S), and Thr (T)) motif in the COOH-terminal region of the protein were not required as cis-acting determinants for ubiquitination. This is the first report of a wild-type secretory polypeptide serving as a substrate of the ubiquitin proteolytic pathway. These results suggest that the ubiquitin-dependent proteolytic pathway is involved in regulating the metabolic stability of intracellular PTHrP, and this regulation may be an important mechanism for modulating its effects on cell growth and differentiation.