The effects of thyroxine binding on the conformation of human prealbumin and bovine serum albumin have been examined. A blue shift in protein absorption was observed with prealbumin, whereas a red shift was observed with bovine serum albumin. In the case of prealbumin, where the two binding sites are identical, the total absorption change was confined to the binding of the first ligand and has been interpreted as resulting from a conformational change. A blue shift observed in the absorption spectrum of thyroxine, however, was the same for the first and second bound molecules. These data have been interpreted in terms of two identical and interacting sites on prealbumin and explain the origin of the difference in binding affinities between the first and second sites. Fluorescence quenching by thyroxine and thyroxine effects on tryptic hydrolysis of prealbumin are in accord with the above interpretation.