Although all iodothyronine 5'-deiodinases require thiol cofactors for activity, the type II variant has been suspected to contain no reactive thiol groups because of its resistance to inactivation by iodoacetate (IAC). We report here that, under suitable stoichiometric conditions for the alkylation reaction, the type II enzyme is substantially inactivated by IAC. The reaction follows pseudo-first-order kinetics with an inactivation rate constant of 0.08 min-1. Moreover, the enzyme is inhibited by hydroxyethyl disulfide and propylthiouracil. These reagents, but not thyroxine, also protect the enzyme from inactivation by IAC, The data suggest that IAC interacts with an essential thiol group in the active center domain.