FAT10 is a ubiquitin-like protein that is encoded in the major histocompatibility complex class I locus and is synergistically inducible with interferon-␥ and tumor necrosis factor ␣. The molecule consists of two ubiquitin-like domains in tandem arrangement and bears a conserved diglycine motif at its carboxyl terminus commonly used in ubiquitin-like proteins for isopeptide linkage to conjugated proteins. We investigated the function of FAT10 by expressing murine FAT10 in a hemagglutinin-tagged wild type form as well as a diglycine-deficient mutant form in mouse fibroblasts in a tetracycline-repressible manner. FAT10 expression did not affect major histocompatibility complex class I cell surface expression or antigen presentation. However, we found that wild type but not mutant FAT10 caused apoptosis within 24 h of induction in a caspase-dependent manner as indicated by annexin V cell surface staining and DNA fragmentation. Wild type FAT10, but not its diglycine mutant, was covalently conjugated to thus far unidentified proteins, indicating that specific FAT10 activating and conjugating enzymes must be operative in unstimulated fibroblasts. Because FAT10 expression causes apoptosis and is inducible with tumor necrosis factor ␣, it may be functionally involved in the programmed cell death mediated by this cytokine.The covalent posttranslational modification of proteins is a versatile principle of determining the half-life, intracellular localization, and activity of proteins. In addition to modification by small molecules like orthophosphate, acetic acid, lipids, or sugars, the attachment of protein tags via isopeptide linkage to lysine residues in target proteins has recently been recognized as a frequently used and very diverse theme in cell biology. The prototype of such a protein tag is ubiquitin, which, when assembled as a polyubiquitin chain onto substrate proteins, can target these proteins to the 26S proteasome for degradation (1). Recently, it has become clear that the manner in which ubiquitin is linked in polyubiquitin chains defines the fate of the modified protein. The specific targeting signal for the proteasome pathway is a polyubiquitin chain that uses the K48 residue of the proximal ubiquitin as a target for further rounds of ubiquitination. The formation of K63-linked ubiquitin polymers, in contrast, does not lead to degradation but seems to play a role in DNA repair (2) and endocytosis (3). The conjugation of receptors with a single ubiquitin moiety can also serve as a signal for endocytosis (4), whereas in the case of histone H2B, monoubiquitination appears to regulate nucleosome function and cell division (5).The specificity of substrate selection and the mode of ubiquitin conjugation are determined by an enzymatic cascade required for the activation and specific transfer of ubiquitin. It consists of ubiquitin-activating enzyme (E1) 1 , which uses the energy of ATP to form a thioester linkage between a cysteine residue of the E1 enzyme and the carboxyl terminus of ubiquitin consisting of two ...