Human choriogonadotropin (hCG) and follitropin (FSH) belong to the glycoprotein hormone family. These hormones are heterodimers and composed of a common alpha subunit and a distinct beta subunit which confers receptor-binding specificities. In addition to this structural similarity, they share a similar signal pathway involving G protein, adenylyl-cyclase and induction of cAMP synthesis. Therefore, a presumptive relationship of these common structure and function has been the subject of extensive past investigations, but a definitive clue has been elusive. As a step to address this important issue, a series of recombinant mutants of hCG and human FSH were generated in which the COOH-terminal amino acids of the alpha subunit were successively removed or substituted. Furthermore, a set of peptides were synthesized with sequences corresponding to different regions of the alpha subunit. Deletion of the alpha COOH-terminal Ser92 had no effect on receptor-binding or cAMP induction by FSH and hCG. Truncation of alpha Lys91-Ser92 or alpha His90-Lys91-Ser92 abolished the ability of both hormones to induce cAMP synthesis. It significantly reduced receptor binding of FSH but not hCG. The different functions of the alpha COOH-terminal region are further noticed with a peptide corresponding to the last 10 amino acids of alpha. It failed to bind to the FSH receptor but was capable of binding to the LH/CG receptor and stimulating cAMP synthesis. These results are the first conclusive evidence that alpha His90-Lys91 play an essential role in cAMP induction of both hormones. In contrast to this common role, they are necessary for FSH binding to the FSH receptor but not for hCG binding to the LH/CG receptor. The hCG alpha COOH-terminal region makes direct contact with the LH/CG receptor, and this low affinity contact is necessary and sufficient to activate the receptor for signal generation. This conclusion is supported by the study using mutant hCGs in which either alpha His90 or Lys91 was substituted.