Conjugation in the fission yeast Schizosaccharomyces pombe is controlled by the action of mating pheromones. Here I describe the isolation and characterization of M-factor, the pheromone released by M-type cells. M-factor is a nanopeptide in which the carboxy-terminal cysteine residue is carboxy-methylated and S-alkylated, probably with a farnesyl residue: Tyr-Thr-Pro-Lys-Val-Pro-Tyr-Met-Cys(S-farnesyl)-OCH3. Evidence for this structure was obtained by amino acid analysis, mass spectrometry and tandem mass spectrometry of the native M-factor. Two genes encoding the M-factor were also identified and characterized. It appears that M-factor is synthesized as a larger precursor which is post-translationally cleaved and modified to yield the active pheromone. The proposed modifications are consistent with mechanisms known to exist in other yeast and higher eukaryotes.