In this paper, we established a modified yeast two-hybrid system, which is specialized for the detection of SH2 domain-binding proteins. The employment of the SH2 domain-tyrosine kinase fusion protein as bait allowed the efficient identification of SH2 domain-binding proteins. The general applicability of the system was tested using various combinations of SH2-kinase fusion bait and prey. The results indicate that the system specifically detected the previously reported in vivo interactions between the SH2 domains and their binding partners. In addition, using this system, we found the interaction between the adaptor protein, Lad, and the SH2 domain of Grb2 or PLC-gamma1. The binding of Lad to Grb2 was further confirmed in mammalian cells by a co-immunoprecipitation study. The conclusion is that the established tyrosine phosphorylation-dependent yeast two-hybrid system provides a novel and efficient way to define the SH2 domain-binding molecules.