A major pathway of eukaryotic mRNA turnover occurs by deadenylation-dependent decapping that exposes the transcript to 533 exonucleolytic degradation. A critical step in this pathway is decapping, since removal of the cap structure permits 533 exonucleolytic digestion. Based on alterations in mRNA decay rate from strains deficient in translation initiation, it has been proposed that the decapping rate is modulated by a competition between the cytoplasmic cap binding complex, which promotes translation initiation, and the decapping enzyme, Dcp1p. In order to test this model directly, we examined the functional interaction of Dcp1p and the cap binding protein, eukaryotic translation initiation factor 4E (eIF4E), in vitro. These experiments indicated that eIF4E is an inhibitor of Dcp1p in vitro due to its ability to bind the 5 cap structure. In addition, we demonstrate that in vivo a temperature-sensitive allele of eIF4E (cdc33-42) suppressed the decapping defect of a partial loss-of-function allele of DCP1. These results argue that dissociation of eIF4E from the cap structure is required before decapping. Interestingly, the temperature-sensitive allele of eIF4E does not suppress the decapping defect seen in strains lacking the decapping activators, Lsm1p and Pat1p. This indicates that these activators of decapping affect a step in mRNA turnover distinct from the competition between Dcp1 and eIF4E.The turnover of mRNAs is a significant aspect of the differential gene expression in the eukaryotic cell (for reviews, see references 5, 11, 23, and 36). It has become clear, at least in yeast, that mRNAs with different decay rates are largely degraded by a single general pathway of mRNA turnover. In this pathway, mRNAs are first deadenylated, which allows the transcript to become a substrate for a decapping reaction catalyzed by the decapping enzyme encoded by the DCP1 gene (6,14,22,(29)(30)(31). Once decapped, the mRNAs are then susceptible to 5Ј33Ј exonucleolytic degradation by the Xrn1p exoribonuclease (22,29,30). Several observations suggest a similar pathway of degradation is likely to exist in other eukaryotic cells. For example, deadenylation can be the first step in mammalian mRNA turnover (42,47). Moreover, deadenylated decapped intermediates in turnover can be detected in mammals and in Chlamydomonas (12, 18). In addition, several proteins functioning in mRNA decapping in yeast (Dcp1p, Dcp2p, Xrn1p, Pat1p [also known as Mrt1p], and Lsm1p) have homologs throughout the eukaryotic kingdom (4,15,37,38,46).In yeast, multiple lines of evidence suggest that the decapping of mRNAs is an important control point in the regulation of mRNA half-life. In the deadenylation-dependent decapping pathway of mRNA turnover, the basis for the differential decay rates of individual yeast mRNAs is that transcripts differ in their rates of deadenylation and decapping. Short-lived mRNAs decap rapidly, while longer-lived mRNAs decap more slowly (29,30). In addition, in the deadenylation-independent pathway of mRNA turnover, transcripts ...