We have isolated two cDNAs from Arabidopsis thaliana encoding bifunctional 3-hydroxysteroid dehydrogenase/C-4 decarboxylases (3HSD/D) involved in sterol synthesis, termed At3HSD/D1 and At3HSD/D2. Transformation of the yeast ergosterol auxotroph erg26 mutant, which lacks 3HSD/D activity, with the At3HSD/D1 isoform or with At3HSD/D2 isoform containing a C-terminal At3HSD/D1 endoplasmic reticulum-retrieval sequence restored growth and ergosterol synthesis in erg26. An in vitro enzymatic assay revealed high 3HSD/D activity for both isoenzymes in the corresponding microsomal extracts. The two At3HSD/D isoenzymes showed similar substrate specificities that required free 3-hydroxyl and C-4-carboxyl groups but were quite tolerant in terms of variations of the sterol nucleus and side chain structures. Data obtained with 4␣-carboxy-cholest-7-en-3-ol and its 3␣-deuterated analog revealed that 3␣-hydrogen-carbon bond cleavage is not the rate-limiting step of the reaction. In planta reduction on the expression of the 3HSD/D gene as a consequence of VIGS-mediated gene silencing in Nicotiana benthamiana led to a substantial accumulation of 3-hydroxy-4,14-dimethyl-5␣-ergosta-9,19-cyclo-24(24 1 )-en-4␣-carboxylic acid, consistent with a decrease in 3HSD/D activity. These two novel oxidative decarboxylases constitute the first molecularly and functionally characterized HSDs from a short chain dehydrogenase/reductase family in plants.Sterols are essential components of all eukaryotic cell membranes, and the biosynthetic pathways differ significantly. The sterol molecule becomes functional only after removal of the two methyl groups at C-4. Both methyl groups at C-4 are removed early and successively in animals and yeast, whereas in higher plants one methyl group is initially removed from a 4,4-dimethyl-9,19-cyclopropylsterol precursor, and the second is eliminated several steps later (1-3). In plants, we have characterized the activities of a sterol C-4 methyl oxidase (SMO), 3 a 4␣-carboxysterol-3-hydroxysteroid dehydrogenase/C-4 decarboxylase (3HSD/D), and an NADPH-dependent 3-oxosteroid reductase from partially purified preparations (4 -6) in order to define the steps involved in C-4 demethylation in plants. The first step is initiated by the SMO, whereby this enzyme converts the C-4␣ methyl group to produce a 4␣-carboxysterol derivative that is subsequently oxidatively decarboxylated by the 3HSD/D to produce a C-4-monodemethylated 3-oxosteroid, which is then stereospecifically reduced by the 3-ketoreductase. In contrast to animals and yeast where the SMO is encoded by a single gene (7), we biochemically characterized two distinct microsomal SMOs in Zea mays (4), and we identified two distinct families of SMO genes in Arabidopsis thaliana (8). Until now, the gene(s) coding the single bifunctional protein 3HSD/D (Fig. 1) have not been characterized.Furthermore, little is known about plant hydroxysteroid dehydrogenases that are either members of the short chain dehydrogenases/reductases (SDR) (9 -11) or the a...