We have developed a reliable genetic selection strategy for isolating interacting proteins based on the ''hitchhiker'' mechanism of the Escherichia coli twin-arginine translocation (Tat) pathway. This method, designated FLI-TRAP (functional ligand-binding identification by Tat-based recognition of associating proteins), is based on the unique ability of the Tat system to efficiently cotranslocate noncovalent complexes of 2 folded polypeptides. In the FLI-TRAP assay, the protein to be screened for interactions is engineered with an Nterminal Tat signal peptide, whereas the known or putative partner protein is fused to mature TEM-1 -lactamase (Bla). Using a series of c-Jun and c-Fos leucine zipper (JunLZ and FosLZ) variants of known affinities, we observed that only those chimeras that expressed well and interacted strongly in the cytoplasm were able to colocalize Bla into the periplasm and confer -lactam antibiotic resistance to cells. Likewise, the assay was able to efficiently detect interactions between intracellular single-chain Fv (scFv) antibodies and their cognate antigens. The utility of FLI-TRAP was then demonstrated through random library selections of amino acid substitutions that restored (i) heterodimerization to a noninteracting FosLZ variant, and (ii) antigen binding to a low-affinity scFv antibody. Because Tat substrates must be correctly folded before transport, FLI-TRAP favors the identification of soluble, nonaggregating, protease-resistant protein pairs and, thus, provides a powerful tool for routine selection of interacting partners (e.g., antibody-antigen), without the need for purification or immobilization of the binding target.ligand binding proteins ͉ protein folding quality control ͉ signal peptide ͉ twin-arginine translocation ͉ 2-hybrid system P rotein-protein interactions are key molecular events that integrate multiple gene products into functional complexes in virtually every cellular process. Because such interactions mediate numerous disease states and biological mechanisms underlying the pathogenesis of bacterial and viral infections, identification of protein-protein interactions remains one of the most important challenges in the postgenomics era. The yeast 2-hybrid (Y2H) system (1) has been the tool of choice for revealing numerous protein-protein interactions, underlying diverse protein networks and complex protein machinery inside living cells. To date, Y2H has been used to generate protein interaction maps for humans (2), Drosophila melanogaster (3), Caenorhabditis elegans (4), Saccharomyces cerivisiae (5, 6), vaccinia virus (7), and Escherichia coli bacteriophage T7 (8). Another important application of the Y2H methodology is the discovery of diagnostic and therapeutic proteins, whose mode of action is high-affinity binding to a target peptide or protein. For example, several groups have isolated antibody fragments that are readily expressed in the cytoplasm of cells where they bind specifically to a desired target (9, 10), and in certain instances ablate protein functi...