The FACT complex of vertebrate cells, comprising the Cdc68 (Spt16) and SSRP1 proteins, facilitates transcription elongation on a nucleosomal template and modulates the elongation-inhibitory effects of the DSIF complex in vitro. Genetic findings show that the related yeast (Saccharomyces cerevisiae) complex, termed CP, also mediates transcription. The CP components Cdc68 and Pob3 closely resemble the FACT components, except that the C-terminal high-mobility group (HMG) box domain of SSRP1 is not found in the yeast homolog Pob3. We show here that Nhp6a and Nhp6b, small HMG box proteins with overlapping functions in yeast, associate with the CP complex and mediate CP-related genetic effects on transcription. Absence of the Nhp6 proteins causes severe impairment in combination with mutations impairing the Swi-Snf chromatin-remodeling complex and the DSIF (Spt4 plus Spt5) elongation regulator, and sensitizes cells to 6-azauracil, characteristic of elongation effects. An artificial SSRP1-like protein, created by fusing the Pob3 and Nhp6a proteins, provides both Pob3 and Nhp6a functions for transcription, and competition experiments indicate that these functions are exerted in association with Cdc68. This particular Pob3-Nhp6a fusion protein was limited for certain Nhp6 activities, indicating that its Nhp6a function is compromised. These findings suggest that in yeast cells the Cdc68 partners may be both Pob3 and Nhp6, functioning as a bipartite analog of the vertebrate SSRP1 protein.Transcription of eukaryotic protein-coding genes takes place in the context of chromatin. In chromatin, DNA is associated with histone proteins in a nucleosomal configuration and with other proteins that have structural and/or regulatory roles. This intricate assembly of structural and regulatory proteins with DNA is generally inhibitory for transcription through the interference with transcription activator proteins and general transcription factors (reviewed in reference 57) and obstruction of the RNA polymerase II (RNAP II) elongation complex by nucleosomes (8; reviewed in reference 57). The processivity of elongation complexes is also inhibited by several nonnucleosomal chromatin components (19,50,60). Among the proteins regulating both nucleosomal and nonnucleosomal transcriptional inhibition is one named FACT (51).FACT is an abundant nuclear protein complex that has been purified and characterized based on its ability to allow transcription elongation along a nucleosomal template in vitro (27,33,34). In keeping with this activity, the FACT complex (also termed DUF [32]) has been shown to interact with nucleosomes and with histone H2A-H2B dimers and to have DNAuntwisting activity in vitro (32, 34). FACT has also been found to counteract the inhibitory effects on transcripton elongation imposed in vitro by the DSIF complex (51). In the budding yeast Saccharomyces cerevisiae, FACT has a structural, and possibly functional, homolog in the form of the CP complex, which has been implicated by genetic evidence in the interaction of chromati...