The general transcription factor TFIID facilitates recruitment of the transcription machinery to gene promoters and regulates initiation of transcription by RNA polymerase II. hTAFII130, a component of TFIID, interacts with and serves as a coactivator for multiple transcriptional regulatory proteins, including Sp1 and CREB. A yeast two-hybrid screen has identified an interaction between hTAFII130 and heterochromatin protein 1 (HP1), a chromatinassociated protein whose function has been implicated in gene silencing. We find that hTAFII130 associates with HP1 in an isoformspecific manner: HP1␣ and HP1␥ bind to hTAFII130, but not HP1. In addition, we show that endogenous hTAFII130 and components of TFIID in HeLa nuclear extracts associate with glutathione Stransferase-HP1␣ and -HP1␥. hTAF II 130 possesses a pentapeptide HP1-binding motif, and mutation of the hTAFII130 HP1 box compromises the interaction of hTAFII130 with HP1. We demonstrate that Gal4-HP1 proteins interfere with hTAFII130-mediated activation of transcription. Our results suggest that HP1␣ and HP1␥ associate with hTAFII130 to mediate repression of transcription, supporting a new model of transcriptional repression involving a specific interaction between a component of TFIID and chromatin.T he general transcription factor TFIID, through the activities of its composite TATA-binding protein (TBP) and TBPassociated factors (TAF II s), plays a central role in the regulation of transcription by RNA polymerase II (reviewed in refs. 1-4). TAF II s participate in transcription by serving as molecular integrators of signals mediated by site-specific transcription factors, assisting in promoter recognition, enzymatically modifying target proteins, and facilitating the nucleation of the preinitiation complex formation. A plethora of biochemical and genetic data support the notion that TAF II s function at the interface between gene-specific transcriptional regulators and general transcription machinery.Human TFIID, composed of TBP and 13 associated TAF II s, is required for activator-dependent transcription in vitro. hTAF II 130 and its Drosophila homologue dTAF II 110 directly contact the glutamine-rich activation domains of Sp1 and function as Sp1's coactivator (5-7). dTAF II 110 and hTAF II 130 also interact with the Q2 activation domain of the cAMP-responsive transcription factor CREB and mediates its activation function (7-9). In addition, hTAF II 130 increases transcriptional activation by the retinoic acid, vitamin D3, and thyroid hormone receptors without directly contacting their activation domains (10).We have mapped the domains of hTAF II 130 that interact with Sp1 and CREB to the central glutamine-rich regions (refs. 11 and 12, Fig. 1A Modulation of chromatin structure plays a fundamental role in gene expression because transcription factors must contend with the nucleosomes, which are generally inhibitory to transcription. Genetic and biochemical approaches have led to the discovery of multiple transcription factor complexes that are thought to a...