Copyright 2000 Academic PressProtein tyrosine phosphatases (PTPs) are a family of enzymes that modulate the cellular level of tyrosine phosphorylation. Based on cellular location, they are classified as receptor like or intracellular PTPs. Structure and function studies have led to the understanding of the enzymatic mechanism of this class of enzymes. Proper targeting of PTPs is essential for many cellular signalling events including antigen induced proliferative responses of B and T cells. The physiological significance of PTPs is further unveiled through mice gene knockout studies and human genome sequencing and mapping projects. Several PTPs are shown to be critical in the pathogenesis of human diseases.