A screen for host mutations which increase the rate of transposition of Ty1 and Ty2 into a chromosomal target was used to identify factors influencing retroelement transposition. The fortuitous presence of a mutation in the CAC3 gene in the strain in which this screen was undertaken enabled us to discover that double mutaions of cac3 and hir3, but neither of the two single mutations, caused a dramatic increase in the rate of retrotransposition. We further showed that this effect was not due to an increase in the overall level of Ty1 mRNA. Two subtle cac3 phenotypes, slight methyl methanesulfonate (MMS) sensitivity and reduction of telomeric silencing, were significantly enhanced in the cac3 hir3 double mutant. In addition, the growth rate of the double mutant was reduced. HIR3 belongs to a class of HIR genes that regulate the transcription of histones, while Cac3p, together with Cac1p and Cac2p, forms chromatin assembly factor I. Other combinations of mutations in cac and hir genes (cac3 hir1, cac3 hir2, and cac2 hir3) also increase Ty transposition and MMS sensitivity and reduce the growth rate. A model explaining the synergistic interaction between cac and hir mutations in terms of alterations in chromatin structure is proposed.Retroviruses are currently under intensive study because they can elicit malignant tumors and cause AIDS. Furthermore, at least 0.1 to 0.6% of the human genome is composed of endogenous retroviruses and long-terminal-repeat (LTR)-containing retrotransposons, which resemble retroviruses in their structural organization and mode of transposition (38). The life cycle of these elements begins with the transcription of an integrated DNA copy of the element and the incorporation of the transcribed RNA into a viruslike particle composed of element-encoded proteins, including the capsid protein, protease, reverse transcriptase, and integrase. The RNA is then reverse transcribed into cDNA, which integrates into a new chromosomal location in the host cell (for a review, see reference 5). Such integration is required for retroviruses to induce disease, for example, by activating a nearby cellular protooncogene (70). Likewise, insertions of the yeast Ty1 element (5) can alter the regulation of nearby cellular genes.Common laboratory yeast (Saccharomyces cerevisiae) strains contain five types of Ty elements composed of central regions of DNA flanked by LTRs. Structural proteins and enzymatic activity are encoded within the central region (for reviews, see references 5 and 22). Ty1, Ty2, Ty4, and Ty5 elements are members of the copia class of retrotransposons, while Ty3 elements belong to the gypsy class. Ty1 and Ty2 elements are respectively present at about 30 to 35 and 5 to 15 copies per genome, contain the same LTR sequences (called delta elements), and have very similar internal regions. The more distantly related retrotransposons Ty3, Ty4, and Ty5 have different sets of LTRs, are present in lower copy numbers, and have not been observed to be insertional mutagens.Yeast retrotransposons provide ...