The sensing of bacterial signals is performed by peptidoglycan recognition protein LC (PGRP-LC), a transmembrane protein with an intracellular domain. Binding of bacterial peptidoglycan leads to dimerization of PGRP-LC which generates the conformation needed to bind and activate the Imd protein. However alternate isoforms of PGRP-LC can also be expressed with different functions: PGRP-LCx recognizes polymeric peptidoglycan, while PGRP-LCa does not bind peptidoglycan directly but acts alongside PGRP-LCx to bind monomeric peptidoglycan fragments (called tracheal cytotoxin or "TCT"). Another PGRP (PGRP-LE) also acts intracellularly to bind TCT that has crossed the cell membrane or is derived from an intracellular infection. PGRP-LA promotes the activation of Imd signalling in epithelial cells, but the mechanism is still unknown.
Other PGRPs can inhibit the activation of Imd signalling by binding bacterial signals or inhibiting host signalling proteins: PGRP-LF is a transmembrane PGRP that lacks an intracellular domain and does not bind peptidoglycan. Instead PGRP-LF forms dimers with PGRP-LC preventing PGRP-LC dimerization and consequently activation of Imd signalling. A number of secreted PGRPs have amidase activity that downregulate the Imd pathway by digesting peptidoglycan into short, non-immunogenic fragments. These include PGRP-LB, PGRP-SC1A, PGRP-SC1B, and PGRP-SC2. Additionally, PGRP-LB is the major regulator in the gut.