Premature termination (nonsense) codons trigger rapid mRNA decay by the nonsense-mediated mRNA decay (NMD) pathway. Two conserved proteins essential for NMD, UPF1 and UPF2, are phosphorylated in higher eukaryotes. The phosphorylation and dephosphorylation of UPF1 appear to be crucial for NMD, as blockade of either event in Caenorhabditis elegans and mammals largely prevents NMD. The universality of this phosphorylation/dephosphorylation cycle pathway has been questioned, however, because the well-studied Saccharomyces cerevisiae NMD pathway has not been shown to be regulated by phosphorylation. Here, we used in vitro and in vivo biochemical techniques to show that both S. cerevisiae Upf1p and Upf2p are phosphoproteins. We provide evidence that the phosphorylation of the N-terminal region of Upf2p is crucial for its interaction with Hrp1p, an RNA-binding protein that we previously showed is essential for NMD. We identify specific amino acids in Upf2p's N-terminal domain, including phosphorylated serines, which dictate both its interaction with Hrp1p and its ability to elicit NMD. Our results indicate that phosphorylation of UPF1 and UPF2 is a conserved event in eukaryotes and for the first time provide evidence that Upf2p phosphorylation is crucial for NMD.Cells have evolved many quality control mechanisms to eliminate aberrant proteins and mRNAs that interfere with normal cellular functions. One such mechanism is the nonsense-mediated mRNA decay (NMD) pathway, which eliminates mRNAs that contain premature termination (nonsense) codons within the protein coding region, thereby preventing the synthesis of truncated proteins with dominant-negative and deleterious gainof-function activities (3,7,14,16,24,42,47). The importance of this surveillance mechanism is underscored by its conservation in a wide variety of organisms, including Saccharomyces cerevisiae, Caenorhabditis elegans, Drosophila melanogaster, plants, and mammals (12,13,16,25,27,34,38).Several genes essential for NMD have been identified in yeast, most notably UPF1, UPF2, and UPF3, all of which destabilize nonsense codon-containing mRNAs without affecting the decay rate of most wild-type mRNAs (16,25). The yeast UPF1 gene encodes the protein Upf1p, which has RNA-binding and RNA-dependent ATPase/helicase activities (8, 9, 45). Yeast UPF3 encodes the basic protein Upf3p, which harbors several nuclear localization and nuclear export signals that allow the protein to shuttle between the nucleus and the cytoplasm (39, 40). Yeast UPF2 encodes the adaptor protein Upf2p, which forms a complex with both Upf1p and Upf3p (6, 19). Single or multiple deletions of each of these three UPF genes produce similar effects on mRNA decay, consistent with the notion that the Upf proteins function as a molecular complex in a single pathway (19).The NMD pathway is elicited by recognition of a nonsense codon, but the precise features distinguishing a premature termination codon from a bona fide stop codon remain unknown. In S. cerevisiae, one model for NMD suggests that the de...