Since both aminopeptidases and angiotensin I-converting enzyme are reported to degrade circulating enkephalins, we have examined the degradation of low-molecular-weight opioid peptides by a vascular plasma membrane-enriched fraction previously shown to contain both angiotensin I-converting enzyme (EC 3.4.15.1) and aminopeptidase M (EC 3.4.11.2). Except for an enkephalin analog resistant to amino-terminal hydrolysis, [ D-Ala 2]enkephalin, the purified vascular plasma membrane preferentially degraded low-molecular-weight opioids by hydrolysis of the N-terminal Tyr-1-Gly-2 bond. Enkephalin degradation was optimal at pH 7.0 and was inhibited by the aminopeptidase inhibitors amastatin ( I 50 = 0.08 μM), bestatin (9.0 μM) and puromycin (80 μM). Maximal rates of hydrolysis, calculated per mg plasma membrane protein, were highest for the shorter peptides (18.3, 15.6 and 16.6 nmol/min per mg for Met 5-enkephalin, Leu 5-enkephalin and Leu 5-enkephalin-Arg 6, respectively) and decreased with increasing peptide length (0.7 nmol/min per mg for dynorphin(1–13)). No significant hydrolysis of β- and γ-endorphin was detected. K m values decreased significantly with increasing peptide length ( K m = 72.9 ± 2.7, 43.6 ± 4.7 and 21.4 ± 0.9 μM for Met 5-enkephalin, Leu 5-enkephalin-Arg 6 and Met 5-enkephalin-Arg 6-Phe 7, respectively). However, no further decreases were seen with even larger sequences, i.e., dynorphin(1–13). Other peptides hydrolyzed by the plasma membrane aminopeptidase (angiotensin III, kallidin and hepta(5–11)-substance P) inhibited enkephalin degradation in a competitive manner. Thus, localization, specificity and kinetic data are consistent with identification of aminopeptidase M as a vascular enzyme with the capacity to differentially metabolize low-molecular-weight opioid peptides within the microenvironment of vascular cell surface receptors. Such differential metabolism may play a role in modulating the vascular effects of peripheral opioids.