1Membraneless pericentromeric heterochromatin (PCH) domains play vital roles in 2 chromosome dynamics and genome stability. However, our current understanding of 3D 3 genome organization does not include PCH domains because of technical challenges 4 associated with repetitive sequences enriched in PCH genomic regions. We investigated the 5 3D architecture of Drosophila melanogaster PCH domains and their spatial associations 6 with euchromatic genome by developing a novel analysis method that incorporates 7 genome-wide Hi-C reads originating from PCH DNA. Combined with cytogenetic analysis, 8 we reveal a hierarchical organization of the PCH domains into distinct "territories." 9 Strikingly, H3K9me2/3-enriched regions embedded in the euchromatic genome show 10 prevalent 3D interactions with the PCH domain. These spatial contacts require H3K9me2/3 11 enrichment, are likely mediated by liquid-liquid phase separation, and may influence 12 organismal fitness. Our findings have important implications for how PCH architecture 13 influences the function and evolution of both repetitive heterochromatin and the gene-rich 14 euchromatin. 15 16 17Author summary 18 The three dimensional (3D) organization of genomes in cell nuclei can influence a wide 19 variety of genome functions. However, most of our understanding of this critical 20 architecture has been limited to the gene-rich euchromatin, and largely ignores the gene-21 poor and repeat-rich pericentromeric heterochromatin, or PCH. PCH comprises large part 22 of most eukaryotic genomes, forms 3D PCH domains in nuclei, and plays vital role in 23 3 chromosome dynamics and genome stability. In this study, we developed a new method 1 that overcomes the technical challenges imposed by the highly repetitive PCH DNA, and 2 generated a comprehensive picture of its 3D organization. Combined with image analyses, 3 we revealed a hierarchical organization of the PCH domains. Surprisingly, we showed that 4 distant euchromatic regions enriched for repressive epigenetic marks also dynamically 5 interact with the main PCH domains. These 3D interactions are mediated by liquid-liquid 6 phase separation mechanisms, similar to how oil and vinegar separate in salad dressing, 7 and can influence the fitness of individuals. Our discoveries have strong implications for 8 how seemingly "junk" DNA could impact functions in the gene-rich euchromatin. 9 13 comprehensive picture of the 3D structure of PCH domains in late-stage D. melanogaster 14 embryos. Our analysis reveals highly heterogeneous contact frequencies among PCH 15 regions, suggesting hierarchical ordering within the domain. Surprisingly, despite being far 16 from PCH on linear chromosomes, euchromatic loci enriched with H3K9me2/3 can 17 dynamically interact with the main PCH domain, and such interactions show properties 18 consistent with liquid-liquid phase separation and influence individual fitness. Our study 19 demonstrates that the spatial interactions among H3K9me2/3 enriched regions both in 20 PCH and the euchromatic genome...