The POT1-TPP1 heterodimer, the major telomere-specific singlestranded DNA-binding protein in mammalian cells, protects chromosome ends and contributes to the regulation of telomerase. The recent discovery of telomeric RNA raises the question of how POT1 faithfully binds telomeric ssDNA and avoids illicit RNA binding that could result in its depletion from telomeres. Here we show through binding studies that a single deoxythymidine in a telomeric repeat dictates the DNA versus RNA discrimination by human POT1 and mouse POT1A. We solve the crystal structure of hPOT1 bound to DNA with a ribouridine in lieu of the critical deoxythymidine and show that this substitution results in burying the 2 0 -hydroxyl group in a hydrophobic region (Phe62) of POT1 in addition to eliminating favorable hydrogen-bonding interactions at the POT1-nucleic acid interface. At amino acid 62, Phe discriminates against RNA binding and Tyr allows RNA binding. We further show that TPP1 greatly augments POT1's discrimination against RNA.crystal structure | DNA-protein interaction | POT1-TPP1 | telomere T elomeres are protein-DNA complexes that comprise the termini of linear chromosomes and help maintain the integrity of eukaryotic genomes (1). Telomeric DNA typically consists of a large number of short repeats of dsDNA ending with a singlestranded (ss) G-rich 3 0 overhang (2-4). Specialized telomeric proteins bind to the ds and ss regions of telomeric DNA to prevent inappropriate degradation and fusion events at chromosome ends (5). One such protein, protection of telomeres 1 (POT1), binds specifically to the ss G-rich 3 0 tail of chromosomes (6-11). Human POT1 (hPOT1) and hPOT1V2 (a splice variant of hPOT1 composed of its DNA-binding domain, used extensively to characterize POT1 structurally and biochemically) bind telomeric DNA with high affinity (K D ∼ 10 nM) and base specificity (10). POT1 is conserved among all mammals and has functional homologs in other species such as Oxytricha nova (12), Tetrahymena thermophila (13), and Schizosaccharomyces pombe (6, 14). A sequence-related protein in the plant Arabidopsis thaliana associates with the telomerase ribonucleoprotein rather than the telomeric DNA (15-17).TPP1, another telomeric protein, binds POT1 and is critical for POT1 recruitment to telomeres (18-21). Although human TPP1 (hTPP1) does not bind telomeric DNA directly, it increases the affinity of hPOT1 for telomeric ssDNA (21). Additionally, the hPOT1-hTPP1 complex increases the processivity of telomerase, the unique reverse transcriptase that maintains telomere length by catalyzing the synthesis of telomeric DNA at 3 0 ends of chromosomes (21). hTPP1-N, an N-terminal fragment of hTPP1 that includes an Oligonucleotide/oligosaccharide binding (OB) domain and the POT1-binding domain, fully recapitulates hTPP1's POT1-ssDNA-binding-stimulation and telomerase processivityenhancement functions (21).TERRA is noncoding RNA-containing multiple G-rich telomeric repeats transcribed from chromosome ends (22)(23)(24). TERRA is found in mammals and b...