Membrane traffic between the trans-Golgi network (TGN) and endosomes is mediated in part by the assembly of clathrin-AP-1 adaptor complex-coated vesicles. This process involves multiple accessory proteins that directly bind to the ear domain of AP-1␥ via degenerate peptide motifs that conform to the consensus sequence ØG(P/D/E)(Ø/L/M) (with Ø being a large hydrophobic amino acid). Recently, ␥-BAR (hereafter referred to as Gadkin for reasons explained below) has been identified as a novel AP-1 recruitment factor involved in AP-1-dependent endosomal trafficking of lysosomal enzymes. How precisely Gadkin interacts with membranes and with AP-1␥ has remained unclear. Here we show that Gadkin is an S-palmitoylated peripheral membrane protein that lacks stable tertiary structure. S-Palmitoylation is required for the recruitment of Gadkin to TGN/endosomal membranes but not for binding to AP-1. Furthermore, we identify a novel subtype of AP-1-binding motif within Gadkin that specifically associates with the ␥1-adaptin ear domain. Mutational inactivation of this novel type of motif, either alone or in combination with three more conventional AP-1␥ binding peptides, causes Gadkin to mislocalize to the plasma membrane and interferes with its ability to render AP-1 brefeldin A-resistant, indicating its physiological importance. Our studies thus unravel the molecular basis for Gadkin-mediated AP-1 recruitment to TGN/endosomal membranes and identify a novel subtype of the AP-1-binding motif.Membrane traffic within eukaryotic cells is mediated in part by coated transport vesicles or tubules that deliver transmembrane cargo proteins and lipids to multiple intracellular destinations along the secretory and endocytic pathways (1, 2). Clathrin coat assembly (3) at the plasma membrane, the trans-Golgi network (TGN) 3 / recycling endosomal boundary, and on endosomes requires mono-and heterotetrameric adaptors and a variety of accessory proteins (4). AP-1 adaptor-containing clathrin coats have been detected at the TGN, on endosomal vesicles (5-8), and on transferrin receptor (TfR)-containing tubular recycling endosomes (REs) in Madin-Darby canine kidney cells (9). AP-1 is composed of two large chains (␥1 and 1), a medium chain ( 1) required for sorting of YXXØ motif-containing transmembrane cargo, and a small chain ( 1) that fulfills a structural role in complex assembly. The ear domain of its ␥1-adaptin subunit (␥-ear) serves as a platform for the recruitment of accessory and regulatory proteins, including aftiphilin, epsinR/enthoprotin/ Clint (10 -13), ␥-synergin (14), eps15, Rabaptin-5, p56, NECAPs (15), and ␥-BAR (8) (see below) to AP-1-coated membrane domains via recognition of ØG(P/D/E)(Ø/L/M) peptide motifs (with Ø being a large hydrophobic amino acid) (14,16,17). Most of these accessory proteins can also associate via the same peptide motifs with ␥-adaptin-related monomeric GGA1-3 adaptors at the TGN.Morphological as well as live cell-imaging studies have shown that AP-1 partitions between endosomal membranes and the TGN (6, ...