Formation of protein-protein assemblies is essential in maintaining cell structure and function. Conservation of structural motifs and binding sites is the result of evolutionary pressure for solutions compatible with both molecular economy and regulation. PDZ domains are a typical example: A conserved fold governs specificity toward recognition of C-terminal protein sequences by small sequential and/or structural deviations within a canonical binding mode. The energetic principles underlying the strength and specificity of PDZ-protein interactions are practically unknown. We use the second PDZ domain (PDZ2) of the human protein tyrosine phosphatase (hPTP1E) as a model to study the energetics of peptide binding to a class I PDZ domain. Calorimetric experiments reveal the enthalpy, entropy, and heat capacity changes accompanying PDZ2 binding to the C-terminal pentadecapeptide derived from the guanine nucleotide exchange factor RA-GEF2. Association is driven by favorable enthalpy and entropy changes below 18 degrees C. Above that temperature the entropy change opposes complex formation. Structure-based predictions poorly reproduce the observed thermodynamic profile of the PDZ-peptide complex. On the basis of MD simulations and experimental findings by others we suggest that changes in the dynamics of the PDZ domain upon peptide binding make a large contribution to the observed thermodynamic parameters. Possible impacts of subtle, ligand-induced structural "stiffening" of PDZ domains are discussed. In our hands, the C-terminal segment of the tumor suppressor APC binds much less tightly to PDZ2 than what has been proposed earlier from surface plasmon resonance experiments.