The sequence of a small Bacillus subtilis lipoprotein is reported. The gene encodes a protein of 124 amino acids, which shows a low but statistically significant homology to the peptidoglycan-associated lipoproteins (PAL) of Escherichia coli and Haemophilus influenzae. Although the functions of these proteins have not been confirmed, they are obviously structural proteins. In E. coli the gene for the peptidoglycan-associated lipoprotein appears to be essential.