The axonal transport of substance P-hydrolyzing peptidase was studied both 2 and 10 days after the ligation of rat sciatic nerves. A peptidase(s) hydrolyzing substance P at the bonds of Phe7-Phe8 and Phe8-Gly9 was found to have accumulated to about 2 times the normal amount in the proximal segment 10 days after ligation. This enzyme activity was inhibited by ethylenediamine tetraacetate or dithiothreitol. These results suggest that this is a metalloendopeptidase which is slowly transported to inactivate neuropeptides in the nerve terminals.