N-terminal signal sequences can direct nascent protein chains to the inner membrane of prokaryotes and the endoplasmic reticulum of eukaryotes by interacting with the signal recognition particle. In this study, we show that isolated peptides corresponding to several bacterial signal sequences inhibit the GTPase activity of theEscherichia colisignal recognition particle, as previously reported (Miller, J. D., Bernstein, H. D., and Walter, P. (1994)Nature367, 657–659), but not by the direct mechanism proposed. Instead, isolated signal peptides bind nonspecifically to the RNA component and aggregate the entire signal recognition particle, leading to a loss of its intrinsic GTPase activity. Surprisingly, only “functional” peptide sequences aggregate RNA; the peptides in general use as “nonfunctional” negative controls (e.g.those with deletions or charged substitutions within the hydrophobic core), are sufficiently different in physical character that they do not aggregate RNA and thus have no effect on the GTPase activity of the signal recognition particle. We propose that the reported effect of functional signal peptides on the GTPase activity of the signal recognition particle is an artifact of the high peptide concentrations and low salt conditions used in thesein vitrostudies and that signal sequences at the N terminus of nascent chainsin vivodo not exhibit this activity.