Inhibition of dipeptidyl peptidase IV (DPP-IV), the main glucagon-like peptide 1 (GLP1)-degrading enzyme, has been proposed for the treatment of type II diabetes. We expressed and purified the ectodomain of human DPP-IV in Pichia pastoris and determined the X-ray structure at 2.1 Å resolution. The enzyme consists of two domains, the catalytic domain, with an α/β hydrolase fold, and a β propeller domain with an 8-fold repeat of a four-strand β sheet motif. The β propeller domain contributes two important functions to the molecule that have not been reported for such structures, an extra β sheet motif that forms part of the dimerization interface and an additional short helix with a double Glu sequence motif. The Glu motif provides recognition and a binding site for the N terminus of the substrates, as revealed by the complex structure with diprotin A, a substrate with low turnover that is trapped in the tetrahedral intermediate of the reaction in the crystal.