The circadian clock facilitates a temporal coordination of most homeostatic activities and their synchronization with the environmental cycles of day and night. The core oscillating activity of the circadian clock is formed by a heterodimer of the transcription factors CLOCK (CLK) and CYCLE (CYC). Posttranslational regulation of CLK/CYC has previously been shown to be crucial for clock function and accurate timing of circadian transcription. Here we report that a sequential and compartment-specific phosphorylation of the Drosophila CLK protein assigns specific localization and activity patterns. Total and nuclear amounts of CLK protein were found to oscillate over the course of a day in circadian neurons. Detailed analysis of the cellular distribution and phosphorylation of CLK revealed that newly synthesized CLK is hypophosphorylated in the cytoplasm prior to nuclear import. In the nucleus, CLK is converted into an intermediate phosphorylation state that correlates with transactivation of circadian transcription. Hyperphosphorylation and degradation are promoted by nuclear export of the CLK protein. Surprisingly, CLK localized to discrete nuclear foci in cell culture as well as in circadian neurons of the larval brain. These subnuclear sites likely contain a storage form of the transcription factor, while homogeneously distributed nuclear CLK appears to be the transcriptionally active form. These results show that sequential post-translational modifications and subcellular distribution regulate the activity of the CLK protein, indicating a core post-translational timing mechanism of the circadian clock.The circadian clock provides a molecular mechanism that orchestrates behavior and physiology in a temporal fashion and synchronizes homeostatic functions with the environmental cycles of day and night (1-3). The central oscillating activity of the Drosophila and mammalian circadian clock is formed by the heterodimeric complex of the transcription factors CLOCK (CLK) 2 and CYCLE (CYC) that ultimately controls genome-wide transcription and activity states of key regulatory components (4 -7). Importantly, the circadian oscillator is synchronized by environmental cycles, primarily light/dark and temperature cycles (8, 9), but keeps time on its own in the absence of environmental cues, therefore representing a true molecular clock.Despite the crucial role of CLK/CYC for the circadian orchestration of physiology in Drosophila and mammals, little is known about their post-translational regulation (2, 10, 11). Transcript levels of Clk reveal robust circadian oscillations in Drosophila, due to rhythmic binding of the activator PAR-DOMAIN PROTEIN 1 and the repressor VRILLE to V/P-elements in the Clk-promoter (12-14). Rhythmic Clk transcription appears however not essential for self-sustained molecular oscillations, because expression of CLK from a perpromoter in anti-phase to its endogenous rhythm was found to support normal clock function (15). The post-translational regulation of CLK/CYC is however crucial for constituti...