The chloroplast signal recognition particle (cpSRP) and its receptor (cpFtsY) function in thylakoid biogenesis to target integral membrane proteins to thylakoids. Unlike cytosolic SRP receptors in eukaryotes, cpFtsY partitions between thylakoid membranes and the soluble stroma. Based on sequence alignments, a membrane-binding motif identified in Escherichia coli FtsY appears to be conserved in cpFtsY, yet whether the proposed motif is responsible for the membrane-binding function of cpFtsY has yet to be shown experimentally. Our studies show that a small N-terminal region in cpFtsY stabilizes a membrane interaction critical to cpFtsY function in cpSRP-dependent protein targeting. This membrane-binding motif is both necessary and sufficient to direct cpFtsY and fused passenger proteins to thylakoids. Our results demonstrate that the cpFtsY membranebinding motif may be functionally replaced by the corresponding region from E. coli, confirming that the membrane-binding motif is conserved among organellar and prokaryotic homologs. Furthermore, the capacity of cpFtsY for lipid binding correlates with liposome-induced GTP hydrolysis stimulation. Mutations that debilitate the membrane-binding motif in cpFtsY result in higher rates of GTP hydrolysis, suggesting that negative regulation is provided by the intact membrane-binding region in the absence of a bilayer. Furthermore, NMR and CD structural studies of the N-terminal region and the analogous region in the E. coli SRP receptor revealed a conformational change in secondary structure that takes place upon lipid binding. These studies suggest that the cpFtsY membrane-binding motif plays a critical role in the intramolecular communication that regulates cpSRP receptor functions at the membrane.Proper compartmentalization of proteins relies on the ability of protein localization pathways to transport proteins efficiently from their sites of synthesis to their sites of function. The signal recognition particle (SRP) 2 and its receptor function in every kingdom of life to target proteins to the endoplasmic reticulum (eukaryotes), cytoplasmic membrane (prokaryotes), and thylakoid membrane (chloroplasts) (1). The targeting function of SRP relies on a conserved 54-kDa SRP subunit (SRP54; Ffh in Escherichia coli and cpSRP54 in chloroplasts) as well as a conserved SRP receptor (SR␣; FtsY in E. coli and cpFtsY in chloroplasts). For cytosolic SRPs (SRP54 and Ffh), interactions with a substrate signal sequence and an SRP RNA moiety are prerequisite for interaction with the SRP receptor (SR␣ and FtsY) (2). GTP binding and hydrolysis by both SRP54 and SR␣ coordinate substrate release from SRP to the translocon and release of SRP from SR␣. In chloroplasts, cpFtsY functions along with a unique SRP (cpSRP) to post-translationally target nuclear encoded proteins to thylakoid membranes (3). Lightharvesting chlorophyll a/b-binding proteins (LHCPs) imported into the chloroplast stroma are bound by cpSRP to form a soluble targeting complex, which directs the LHCP substrate to the thylakoid...