The Salmonella PmrA/PmrB two-component system uses an iron(III)-binding motif on the cell surface to sense the environmental or host ferric level and regulate PmrA-controlled gene expression. We replaced the iron(III)-binding motif with a lanthanide-binding peptide sequence that is known to selectively recognize trivalent lanthanide ions. The newly engineered two-component system (PmrA/PmrB) can effectively sense lanthanide ion and regulate gene expression in E. coli. This work not only provides the first known lanthanide-based sensing and response in live cells but also demonstrates that the PmrA/PmrB system is a suitable template for future synthetic biology efforts to construct bacteria that can sense and respond to other metal ions in remediation or sequestration.