Flavodoxins are classified in two groups according to the presence or absence of a ϳ20-residue loop of unknown function. In the accompanying paper (36), we have shown that the differentiating loop from the longchain Anabaena PCC 7119 flavodoxin is a peripheral structural element that can be removed without preventing the proper folding of the apoprotein. Here we investigate the role played by the loop in the stability and folding mechanism of flavodoxin by comparing the equilibrium and kinetic behavior of the full-length protein with that of loop-lacking, shortened variants. We show that, when the loop is removed, the three-state equilibrium thermal unfolding of apoflavodoxin becomes two-state. Thus, the loop is responsible for the complexity shown by long-chain apoflavodoxins toward thermal denaturation. As for the folding reaction, both shortened and wild type apoflavodoxins display threestate behavior but their folding mechanisms clearly differ. Whereas the full-length protein populates an essentially off-pathway transient intermediate, the additional state observed in the folding of the shortened variant analyzed seems to be simply an alternative native conformation. This finding suggests that the long loop may also be responsible for the accumulation of the kinetic intermediate observed in the full-length protein. Most revealing, however, is that the influence of the loop on the overall conformational stability of apoflavodoxin is quite low and the natively folded shortened variant ⌬(120 -139) is almost as stable as the wild type protein.The fact that the loop, which is not required for a proper folding of the polypeptide, does not even play a significant role in increasing the conformational stability of the protein supports our proposal (36) that the differentiating loop of long-chain flavodoxins may be related to a recognition function, rather than serving a structural purpose.The flavodoxins are well known electron transfer proteins involved in both photosynthetic and non-photosynthetic reactions that carry a non-covalently bound FMN molecule as a redox center (1, 2). Given their key biological function and a series of practical facts (i.e. they were among the first proteins for which x-ray structures became available (3, 4), their purification in the pre-recombinant era was relatively easy, and they are reasonably stable to handle), flavodoxins were soon found to be convenient models to investigate electron transfer and molecular recognition (1, 2) and, more recently, protein stability (5-20) and folding (18 -21). Based on molecular weight and sequence comparisons, they were divided in two families: short-chain and long-chain flavodoxins (the latter containing an extra ϳ20-residue segment, subsequently shown in Refs. 22 and 23 to form a loop in the folded protein, as highlighted in Fig. 1 of our accompanying article (36)). Despite the wealth of structural and functional information available for several flavodoxins of either family, it is still unclear whether the differentiating loop plays a structura...