Purified rat liver phenylalanine hydroxylase is inactivated in vitro by ascorbate and thiol compounds, dithiothreitol being the most effective inhibitor, with a second order rate constant for the inactivation of 0.066 +/- 0.002 mM-1.min-1 at 20 degrees C and pH 7.2. Anaerobic conditions and catalase protected the enzyme from inactivation by dithiothreitol. This suggests that hydrogen peroxide, produced by oxidation of the thiol, is involved in the inactivation. The substrate, L-phenylalanine, also partially protected the enzyme from this inactivation. It is shown that incubation of the enzyme with dithiothreitol at aerobic conditions, followed by gel filtration, causes the release of iron from the active site. The inactivation by dithiothreitol was reversed by incubation of the iron-depleted enzyme with Fe(II).