Transcriptional factor sterol regulatory element-binding protein 1c activates the transcription of lipogenic genes, including fatty acid synthase (FAS). Hepatitis C virus (HCV) infection is often associated with lipid accumulation within the liver, known as steatosis in the clinic. The molecular mechanisms of HCV-associated steatosis are not well characterized. Here, we showed that HCV non-structural protein 2 (NS2) activated SREBP-1c transcription in human hepatic Huh-7 cells as measured by using a human SREBP-1c promoter-luciferase reporter plasmid. We further showed that sterol regulatory element (SRE) and liver X receptor element (LXRE) in the SREBP-1c promoter were involved in SREBP-1c activation by HCV NS2. Furthermore, expression of HCV NS2 resulted in the upregulation of FAS transcription. We also showed that FAS upregulation by HCV NS2 was SREBP-1-dependent since deleting the SRE sequence in a FAS promoter and expressing a dominant-negative SREBP-1 abrogated FAS promoter upregulation by HCV NS2. Taken together, our results suggest that HCV NS2 can upregulate the transcription of SREBP-1c and FAS, and thus is probably a contributing factor for HCV-associated steatosis.Sterol regulatory element-binding protein 1c (SREBP-1c) is a member of the basic helix-loop-helix leucine zipper family of transcription factors (Horton et al., 2002;Eberle et al., 2004). SREBP-1c expression is regulated at the transcription level (Desvergne et al., 2006). For instance, liver X receptor (LXR) activates SREBP-1c transcription by binding to the LXR element (LXRE) sequences in the SREBP-1c promoter (Yoshikawa et al., 2001;Tarling et al., 2004;Dif et al., 2006). SREBP-1c can also regulate its own transcription in a positive feed-back loop through binding to the sterol regulatory elements (SREs) in the SREBP-1c promoter (Amemiya-Kudo et al., 2000). The newly synthesized, precursor SREBP-1c protein is bound to the endoplasmic reticulum (ER). Following proteolytic digestions, the amino-terminal domain is released and transported to the nucleus as an active transcriptional factor (Brown et al., 2000). The processed, mature SREBP-1 proteins are modified by phosphorylation by protein kinases, such as mitogen-activated protein kinase (MAPK), protein kinase A (PKA) and glycogen synthase kinase-3b (Kotzka et al., 1998;Roth et al., 2000;Lu & Shyy, 2006;Punga et al., 2006). The impact of phosphorylation on the transcriptional activity of SREBP-1 is less clear. For instance, phosphorylation by MAPK appears to enhance the transcriptional activity of SREBP-1, whereas PKA phosphorylation suppresses the function of SREBP-1 (Kotzka et al., 1998Lu & Shyy, 2006). A major function of SREBP-1c is to activate genes involved in the synthesis of fatty acid and their incorporation into triglycerides and phospholipids (Horton et al., 2002;Eberle et al., 2004). As such, abnormal higher levels of SREBP-1c will result in lipid accumulation in the liver and cause steatosis (Ferre & Foufelle, 2007). Fatty acid synthase (FAS) is a well established target gen...