Multifunctionality of viral genes is critical for processes in replication and modulation of infected cells. P gene of rabies virus generates the full-length protein, P1, and the truncated isoform, P3, which gains unique phenotypes lacking in P1, including interactions with multiple cellular membrane-less organelles (MLOs, liquid-liquid phase-separated (LLPS) structures), important to immune evasion. The gain-of-function by P3 proposes that multifunctionality of P isoforms is not merely due to their complement of independent modules, but is regulated by complex interactions of globular and intrinsically disordered regions (IDRs). However, the molecular basis of gain-of-function is unknown. Here we report biophysical and cellular analyses of P1 and P3, identifying a network of intra-protomer interactions involving the globular C-terminal domain and N-terminal IDRs, which differ between the isoforms. Mutagenesis of P3 identified substitutions causing gain- and loss-of-function for MLO interactions, associated with altered interactions of N- and C-terminal regions. Despite reduced MLO association of P1 and P3-loss-of-function mutants compared with wild-type P3, they retain capacity for LLPS in vitro, suggesting that specific inter-molecular interactions enable MLO targeting. P3 and P1 interact similarly with multiple MLO-associated proteins, but RNA binding is only observed for P3, and is enhanced or diminished by gain- and loss-of-function mutations, respectively. These data indicate that differences in interfaces formed between distant regions in P protein isoforms regulate protein-RNA interactions as a principal mechanism in the acquisition of unique functions/MLO interactions by P3, identifying a novel strategy in viral protein multifunctionality.