Dhh1 is a highly conserved DEAD-box protein that has been implicated in many processes involved in mRNA regulation. At least some functions of Dhh1 may be carried out in cytoplasmic foci called processing bodies (P-bodies). Dhh1 was identified initially as a putative RNA helicase based solely on the presence of conserved helicase motifs found in the superfamily 2 (Sf2) of DEXD/H-box proteins. Although initial mutagenesis studies revealed that the signature DEAD-box motif is required for Dhh1 function in vivo, enzymatic (ATPase or helicase) or ATP binding activities of Dhh1 or those of any its many higher eukaryotic orthologues have not been described. Here we provide the first characterization of the biochemical activities of Dhh1. Dhh1 has weaker RNA-dependent ATPase activity than other well characterized DEAD-box helicases. We provide evidence that intermolecular interactions between the N-and C-terminal RecA-like helicase domains restrict its ATPase activity; mutation of residues mediating these interactions enhanced ATP hydrolysis. Interestingly, the interdomain interaction mutant displayed enhanced mRNA turnover, RNA binding, and recruitment into cytoplasmic foci in vivo compared with wild type Dhh1. Also, we demonstrate that the ATPase activity of Dhh1 is not required for it to be recruited into cytoplasmic foci, but it regulates its association with RNA in vivo. We hypothesize that the activity of Dhh1 is restricted by interdomain interactions, which can be regulated by cellular factors to impart stringent control over this very abundant RNA helicase.The regulation of gene expression in eukaryotes is a complex series of events that is well coordinated by different cellular machineries. Central to this process is the regulation of mRNA metabolism. It begins with transcription followed by pre-mRNA processing in the nucleus, nucleo-cytoplasmic transport, translation, and finally, the controlled degradation of mRNA.mRNA degradation is one of the important means of mRNA quality control. In eukaryotic cells two major pathways have evolved for mRNA degradation; they are non-sense-mediated decay, which is deadenylation-independent and the more ubiquitously used deadenylation-dependent pathway (1). Nonsense-mediated decay is the process of choice for quick and efficient removal of transcripts with non-sense codons, unspliced introns, or extended 3Ј-UTR (2). The deadenylationdependent pathway begins with the removal of the 3Ј-poly(A) tail by 3Ј-5Ј exonucleases Ccr4 and Pop2 or poly(A) nuclease (3-7). This is followed by removal of the 5Ј-m 7 -guanosine triphosphate cap by the Dcp2/Dcp1 decapping complex (8, 9). The binding of Dcp1/Dcp2 to the 5Ј cap and decapping are enhanced by a complex of seven Lsm (like-Sm) proteins (Lsm1 through Lsm7), Pat1, Edc3,. The final step in the pathway involves degradation of the decapped and deadenylated RNA by the 5Ј-3Ј exonuclease Xrn1 and by the exosome that acts in the 3Ј-5Ј direction (16,17). Proteins involved in mRNA turnover are localized to distinct foci in the cytoplasm call...