A putative Drosophila melanogaster homologue of mammalian PP5, termed Dm PP5, was identified from cDNA. Dm PP5 comprises a phosphatase catalytic domain preceded by an amino terminal domain containing three tetratricopeptide repeat motifs and shares 60% overall amino acid identity with human PP5. Genomic restriction analysis identified a single Dm PP5 gene that was mapped to the third chromosome at locus 85E10-12 and a strain carrying a deletion that encompasses this gene was identified. Dm PP5 mRNA and protein are more highly expressed in the embryo than at later developmental stages, but their expression levels do not always change synchronously. Dm PP5 protein localises to both the nucleus and the cytoplasm of cells at the periphery of newly cellularized embryos.