HM-1 toxin produced by Hansenula mrakii kills sensitive Saccharomyces cerevisiae. We found that the budding cells and the cells that responded to mating factor were sensitive to HM-1 toxin. These findings indicate that the target sites of HM-1 toxin are developing buds and conjugating tubes. The in vitro activity of beta-1,3-glucan synthase solubilized and partially purified from S. cerevisiae membranes was inhibited by HM-1 toxin at a concentration (around 50 nM, 0.5 micrograms/ml) that coincided well with its minimum inhibitory concentration for the growth of yeast cells. These data indicate that the HM-1 toxin perturbs the synthesis of yeast cell walls by inhibiting the glucan synthesis occurring at a budding site or a conjugating tube, which results in cell lysis.