Transcription factor II D (TFIID) is a multiprotein complex that nucleates formation of the basal transcription machinery. TATA binding protein-associated factors 1 and 7 (TAF1 and TAF7), two subunits of TFIID, are integral to the regulation of eukaryotic transcription initiation and play key roles in preinitiation complex (PIC) assembly. Current models suggest that TAF7 acts as a dissociable inhibitor of TAF1 histone acetyltransferase activity and that this event ensures appropriate assembly of the RNA polymerase IImediated PIC before transcriptional initiation. Here, we report the 3D structure of a complex of yeast TAF1 with TAF7 at 2.9 Å resolution. The structure displays novel architecture and is characterized by a large predominantly hydrophobic heterodimer interface and extensive cofolding of TAF subunits. There are no obvious similarities between TAF1 and known histone acetyltransferases. Instead, the surface of the TAF1-TAF7 complex contains two prominent conserved surface pockets, one of which binds selectively to an inhibitory trimethylated histone H3 mark on Lys27 in a manner that is also regulated by phosphorylation at the neighboring H3 serine. Our findings could point toward novel roles for the TAF1-TAF7 complex in regulation of PIC assembly via reading epigenetic histone marks.initiation complex | protein structure | protein-protein interaction | X-ray crystallography T he general transcription factor II D (TFIID) plays a central role in recognition of the core promoter element and mediates accurate transcription initiation by RNA Polymerase (Pol) II for a large class of genes. TFIID nucleates the formation of the preinitiation complex (PIC) at the transcriptional start site by recruiting other general transcription factors (TFII-A, -B, -E, -F, and -H), along with RNA Pol II. TFIID is assembled in a stepwise manner, with a symmetric TFIID core complex recruited first, followed by further recruitment of additional TATA binding protein (TBP)-associated factors (TAFs) to form the complete asymmetric holo-TFIID complex (1). This megadalton-sized multiprotein assembly, comprised of TBP and 13 evolutionary conserved TAFs (2), is organized into a trilobed structure (3) and undergoes striking rearrangements upon binding to TFIIA and DNA (4). TAF subunits serve multiple functions within the TFIID holocomplex. In addition to TBP, TAF1, TAF2, TAF6, and TAF9 are also involved in recognition of DNA initiator and promoter elements. Moreover, TFIID can behave as an epigenetic effector, capable of recognizing posttranslational histone modifications associated with activated transcription. Eukaryotic TAF1 contains a double bromodomain that recognizes acetylated histones, and TAF3 contains a plant homeo domain (PHD) that binds to histone H3 methylated at lysine 4 (5, 6). In addition to roles in basal transcription, TFIID is also associated with diseases. Overexpression of TAF1, which acts as a specific coactivator of androgen receptor, is related to the progression of human prostate cancer (7). Additionally, altera...