Niemann-Pick Disease Type C (NP-C) is a fatal neurodegenerative disease, which is biochemically distinguished by the lysosomal accumulation of exogenously derived cholesterol. Mutation of either the hNPC1 or hNPC2 gene is causative for NP-C. We report the identification of the yeast homologue of human NPC2, Saccharomyces cerevisiae Npc2p. We demonstrate that scNpc2p is evolutionarily related to the mammalian NPC2 family of proteins. We also show, through colocalization, subcellular fractionation, and secretion analyses, that yeast Npc2p is treated similarly to human NPC2 when expressed in mammalian cells. Importantly, we show that yeast Npc2p can efficiently revert the unesterified cholesterol and GM1 accumulation seen in hNPC2 ؊/؊ patient fibroblasts demonstrating that it is a functional homologue of human NPC2. The present study reveals that the fundamental process of NPC2-mediated lipid transport has been maintained throughout evolution.Niemann-Pick Disease Type C (NP-C) is a fatal neurovisceral disorder that is characterized by the accumulation of low-density-lipoprotein (LDL)-derived cholesterol in endolysosomal compartments (37). NP-C is caused by mutation of either of two genes: hNPC1 (5, 30) or hNPC2 (34). Mutations in hNPC1 account for 95% of all patients (6, 37). Recently, it was demonstrated that the yeast homologue of hNPC1, scNcr1p, can functionally complement the loss of hNPC1 from mutant CHO cells (31). This finding suggests that there is an evolutionary conservation of function between species.Human NPC2 (hNPC2), which is mutated in approximately 5% of NP-C disease (37), encodes a conserved 151-amino-acid secreted glycoprotein with an endoplasmic reticulum signal sequence (24). The NPC2 protein contains an MD-2-related lipid-recognition (ML) domain (21), which is predicted to mediate direct binding to lipids (21). This prediction is based in part on the finding that the MD-2 protein, the founding member of the ML domain family of proteins, binds directly to lipopolysaccharide (49). Structural analysis of an ML domaincontaining protein, the dust mite allergen Der P 2, reveals that this protein folds into two -strands with an internal cavity that is occupied by a hydrophobic ligand predicted to be a lipid (10). As seen for the other ML domain-containing proteins tested thus far (10, 49), the human, mouse, and porcine NPC2 orthologues all bind directly to lipid ligands, specifically cholesterol or cholesterol analogs (13,26,35). The recently solved crystal structure of bovine NPC2 (bNPC2) is consistent with a model wherein cholesterol binds within a loosely packed hydrophobic protein core (13). Taken together, these binding and structural studies suggest that NPC2 plays a direct role in sterol transport.Here we report the identification of the yeast homologue of hNPC2 that we have termed Npc2p (scNpc2p). Our analysis of Saccharomyces cerevisiae Npc2p through phylogenetic and homology modeling studies suggests that this protein has been conserved from yeast to mammals. Most importantly, we show that...