We have developed a method that combines the ROSETTA de novo protein folding and refinement protocol with distance constraints derived from homologous structures to build homology models that are frequently more accurate than their templates. We test this method by building complete-chain models for a benchmark set of 22 proteins, each with 1 or 2 candidate templates, for a total of 39 test cases. We use structure-based and sequence-based alignments for each of the test cases. All atoms, including hydrogens, are represented explicitly. The resulting models contain approximately the same number of atomic overlaps as experimentally determined crystal structures and maintain good stereochemistry. The most accurate models can be identified by their energies, and in 22 of 39 cases a model that is more accurate than the template over aligned regions is one of the 10 lowest-energy models.fragment assembly ͉ structure prediction B uilding accurate 3D structural models for protein sequences of unknown structure is a challenging, unsolved problem in contemporary biology, and its solution would provide insight into a broad range of biological systems. Large-scale genomic sequencing efforts are providing increasing numbers of sequences, but the number of experimentally determined structures remains small by comparison. The goal of homology modeling methods is to match these query sequences with known template structures and construct accurate 3D models of the proteins.This task involves four steps: identifying suitable templates, aligning the query sequence to the templates, building the model for the query sequence by using information from the templates, and evaluating the models. Several methods are available to perform these steps and appear to perform similarly when used optimally (see refs. 1 and 2 for a description of several current methods). Although these methods have been useful, in most cases the final model is not more structurally similar to the query structure than the parent template (3, 4). In addition, many homology-modeling methods introduce physically unrealistic properties into the models in efforts to substitute the query sequence onto a nonnative backbone (2). The fixed backbone of the template is not always able to accommodate the side chains of the query sequence, particularly at buried positions, resulting in poor stereochemistry or atomic overlaps. Although the overall topology of the query structure can be derived from its homologs assuming a reasonably confident alignment, the atomic details of a homology model are of equal interest. Accurate modeling of side-chain and loop conformations is necessary in modeling and manipulating small molecule interactions, protein-protein and protein-nucleic acid interactions, and protein function.A useful homology model is one that can provide more information about a protein of interest than any homologous structures. The positions of the query sequence that are aligned to a template can be modeled by simply copying coordinates for the backbone atoms or by us...