Trailer Hitch (Tral or LSm15) and enhancer of decapping-3 (EDC3 or LSm16) are conserved eukaryotic members of the (L)Sm (Sm and Like-Sm) protein family. They have a similar domain organization, characterized by an N-terminal LSm domain and a central FDF motif; however, in Tral, the FDF motif is flanked by regions rich in charged residues, whereas in EDC3 the FDF motif is followed by a YjeF_N domain. We show that in Drosophila cells, Tral and EDC3 specifically interact with the decapping activator DCP1 and the DEAD-box helicase Me31B. Nevertheless, only Tral associates with the translational repressor CUP, whereas EDC3 associates with the decapping enzyme DCP2. Like EDC3, Tral interacts with DCP1 and localizes to mRNA processing bodies (P bodies) via the LSm domain. This domain remains monomeric in solution and adopts a divergent Sm fold that lacks the characteristic N-terminal ␣-helix, as determined by nuclear magnetic resonance analyses. Mutational analysis revealed that the structural integrity of the LSm domain is required for Tral both to interact with DCP1 and CUP and to localize to P-bodies. Furthermore, both Tral and EDC3 interact with the C-terminal RecA-like domain of Me31B through their FDF motifs. Together with previous studies, our results show that Tral and EDC3 are structurally related and use a similar mode to associate with common partners in distinct protein complexes.Proteins of the (L)Sm (Sm and Like-Sm) family are found in all domains of life and play critical roles in RNA metabolism (reviewed in references 26 and 54). These proteins have the Sm fold, which comprises an N-terminal ␣-helix stacked on top of a five-stranded -barrel-like structure (10,25,38,44,48,49). Sm domains often oligomerize to form hexameric or heptameric rings that stably or transiently associate with singlestranded RNA. Eubacterial and archeal genomes encode between 1 and 3 LSm paralogs, which form monohexameric or monoheptameric rings, while eukaryotes encode more than 18 (L)Sm paralogs that assemble into heteroheptameric rings of different composition and function (reviewed in references 26 and 54).Although much is known about (L)Sm proteins consisting of a single Sm domain, proteins possessing an N-terminal Sm domain followed by C-terminal extensions with additional domains are less well characterized. These include LSm12 to LSm16 (1, 2). LSm12 is characterized by a C-terminal protein methyltransferase domain (1, 2). The LSm13-16 proteins share a divergent form of the Sm domain and a central FDF motif (1, 2). The FDF motifs of LSm13-15 are embedded in low-complexity regions rich in glycine and arginine (1, 2). In contrast, in LSm16 (known as enhancer of decapping-3 and referred to as EDC3 hereafter) the FDF motif is followed by a conserved C-terminal YjeF_N domain that adopts a divergent Rossman fold similar to one in the N-terminal domain of bacterial YjeF (1, 2, 32). EDC3 (LSm16) is known to enhance bulk mRNA decapping in yeast and is required for the decapping-dependent regulation of RPS28B mRNA and YRA1 pre-mRNA ...