The physico-chemical properties and hydroxylase activity of three forms of cytochrome P450, i. e. purified soluble hemoprotein, purified hemoprotein incorporated into the liposomal membrane and microsomal cytochrome P450, were studied. Soluble cytochrome P450 binds type I substrates in a lesser degree than does its microsomal form. The incorporation of hemoprotein into phosphatidyl choline liposomes restores the ability of purified cytochrome P450 to interact with these substrates. The soluble and lipid-bound forms of cytochrome P450 do not differ in their thermal stabilities and protease digestion. The liposome-bound cytochrome P450 has higher dimethylaniline, aniline and p-nitroanisol hydroxylase activities as compared to its soluble form. The aniline hydroxylase activity of microsomal, proteoliposomal and soluble forms of cytochrome P450 is inhibited by the tyrosinecopper complex with NADPH or cumole hydroperoxide as cosubstrates. The inhibiting effect of the complex on other hydroxylase activities depends on the type of cytochrome P450 and the cosubstrates and substrates used.