In Saccharomyces cerevisiae, lysine 4 on histone H3 (H3K4) is methylated by the Set1 complex (Set1C or COMPASS). Besides the catalytic Set1 subunit, several proteins that form the Set1C (Swd1, Swd2, Swd3, Spp1, Bre2, and Sdc1) are also needed to mediate proper H3K4 methylation. Until this study, it has been unclear how individual Set1C members interact and how this interaction may impact histone methylation and gene expression. In this study, Bre2 and Sdc1 are shown to directly interact, and it is shown that the association of this heteromeric complex is needed for proper H3K4 methylation and gene expression to occur. Interestingly, mutational and biochemical analysis identified the C terminus of Bre2 as a critical protein-protein interaction domain that binds to the Dpy-30 domain of Sdc1. Using the human homologs of Bre2 and Sdc1, ASH2L and DPY-30, respectively, we demonstrate that the C terminus of ASH2L also interacts with the Dpy-30 domain of DPY-30, suggesting that this protein-protein interaction is maintained from yeast to humans. Because of the functionally conserved nature of the C terminus of Bre2 and ASH2L, this region was named the SDI (Sdc1 Dpy-30 interaction) domain. Finally, we show that the SDI-Dpy-30 domain interaction is physiologically important for the function of Set1 in vivo, because specific disruption of this interaction prevents Bre2 and Sdc1 association with Set1, resulting in H3K4 methylation defects and decreases in gene expression. Overall, these and other mechanistic studies on how H3K4 methyltransferase complexes function will likely provide insights into how human MLL and SET1-like complexes or overexpression of ASH2L leads to oncogenesis.In Saccharomyces cerevisiae, histone H3 lysine 4 (H3K4) 3 mono-, di-, and trimethylation is mediated by the Set1 histone methyltransferase (1, 2). Set1 and H3K4 methylation were first identified to be required for silencing at rDNA, telomeres, and mating-type loci (3-6). Set1 and H3K4 trimethylation are also found to be located at euchromatin and enriched in the 5Ј-ends of coding regions of transcriptionally active genes (7,8). In addition, Set1 and its human homologs, MLL1, MLL2, and hSET1, associate with the phosphorylated C-terminal domain of RNA polymerase II (7, 9 -11). More recently, it has been shown that various chromodomain and PHD zinc finger-containing proteins can bind to histones and H3K4 di-and trimethylated histone peptides and histones (12)(13)(14). Therefore, these and other studies suggest that Set1-mediated histone methylation plays a positive role in mediating gene expression through recruitment of effector proteins.Unlike other yeast histone methyltransferases, Set1 requires a multiprotein complex for its activity in vitro and in vivo (1,(15)(16)(17)(18). The yeast Set1 complex, also called Set1C or COMPASS (complex associated with Set1), consists of eight subunits (Set1, Bre2, Sdc1, Swd1, Swd2, Swd3, Spp1, and Shg1) (15,18,19). After the discovery of yeast Set1C, it was determined that the human H3K4 methyltransferases MLL1 ...