Amyotrophic lateral sclerosis (ALS) is a progressive neurodegenerative disease. Fused in sarcoma (FUS) is a DNA/RNA binding protein and mutations in FUS cause a subset of familial ALS. Most ALS mutations are clustered in the C-terminal nuclear localization sequence of FUS and consequently lead to the accumulation of protein inclusions in the cytoplasm. It remains debatable whether loss of FUS normal function in the nucleus or gain of toxic function in the cytoplasm plays a more critical role in the ALS etiology. Moreover, the physiological function of FUS in the nucleus remains to be fully understood. In this study, we found that a significant portion of nuclear FUS was bound to active chromatin and that the ALS mutations dramatically decreased FUS chromatin binding ability. Functionally, the chromatin binding is required for FUS transcription activation, but not for alternative splicing regulation. The N-terminal QGSY (glutamine-glycine-serine-tyrosine)-rich region (amino acids 1-164) mediates FUS self-assembly in the nucleus of mammalian cells and the self-assembly is essential for its chromatin binding and transcription activation. In addition, RNA binding is also required for FUS self-assembly and chromatin binding. Together, our results suggest a functional assembly of FUS in the nucleus under physiological conditions, which is different from the cytoplasmic inclusions. The ALS mutations can cause loss of function in the nucleus by disrupting this assembly and chromatin binding. FUS is a multifunctional protein and has been reported to play a role in various aspects of RNA metabolism (6), including transcription regulation and alternative splicing. FUS was initially identified in liposarcomas as part of a fusion protein (7,8) in which the N-terminal domain of FUS (amino acid 1-266) is recombined to transcription factor CHOP at its N terminus. The FUS-CHOP fusion protein activates the transcription of oncogenes and promotes tumorigenesis (9, 10). In familial ALS, most mutations are clustered in the C-terminal nuclear localization sequence (NLS) of FUS and consequently cause the mislocalization of FUS protein from the nucleus to the cytoplasm and the accumulation of protein inclusions (11-13). Such observations suggest two potential disease-causing mechanisms: loss of FUS normal function in the nucleus and gain of toxic function in the cytoplasm. It remains to be determined which mechanism plays a more critical role in ALS etiology and the two mechanisms are not necessarily exclusive of each other.Cytoplasmic FUS inclusions resemble stress granules, indicated by colocalization of FUS with different stress granule components (11,12). Stress granules are temporary cellular structures containing RNAs and proteins from suspended translation apparatus (14). Stress granule formation promotes cell survival under stressed conditions by redistributing translation resources. Compromised stress granule response in the presence of FUS mutants is considered a contributing factor to motor neuron dysfunction (15).Although t...