Parasitic nematodes cause serious diseases in humans, animals, and plants. They have limited lipid metabolism and are reliant on lipid-binding proteins to acquire these metabolites from their hosts. Several structurally novel families of lipidbinding proteins in nematodes have been described, including the fatty acid-and retinoid-binding protein family (FAR). In Caenorhabditis elegans, used as a model for studying parasitic nematodes, eight C. elegans FAR proteins have been described. The crystal structure of C. elegans FAR-7 is the first structure of a FAR protein, and it exhibits a novel fold. It differs radically from the mammalian fatty acid-binding proteins and has two ligand binding pockets joined by a surface groove. The first can accommodate the aliphatic chain of fatty acids, whereas the second can accommodate the bulkier retinoids. In addition to demonstrating lipid binding by fluorescence spectroscopy, we present evidence that retinol binding is positively regulated by casein kinase II phosphorylation at a conserved site near the bottom of the second pocket. far-7::GFP (green fluorescent protein) expression shows that it is localized in the head hypodermal syncytia and the excretory cell but that this localization changes under starvation conditions. In conclusion, our study provides the basic structural and functional information for investigation of inhibitors of lipid binding by FAR proteins.Hydrophobic lipophilic molecules such as fatty acids, eicosanoids, retinoids, and steroids have important functions both as energy sources and in metabolic signaling. They affect fundamental cellular processes such as gene transcription, cell development, inflammation, and immune response (1-3). The cellular cytosol is hydrophilic, and lipids need to be solubilized and protected from chemical damage. Their transport and availability are tightly regulated. Proteins that coordinate the lipid traffic include lipoproteins (such as the low density lipoprotein) and carrier proteins, known as lipid-binding proteins (LBPs).2 In vertebrates LBPs belong to the -sheet calycin superfamily (lipocalins and fatty acid-binding proteins (FABPs)) or the ␣-helical serum albumin-like superfamily. Nematodes are one of the most abundant groups of multicellular organisms. Parasitic nematodes cause serious and difficult to treat diseases in humans, animals, and plants affecting human health as well as having a negative impact on agricultural economics. It is estimated that more than one-sixth of the earth's population (mainly in developing countries), suffers from nematode infections, and at least 4 of the 15 neglected tropical diseases listed by the World Health Organization are caused by nematodes. Parasitic worms possess limited lipid metabolism and depend on import of essential lipids from their host (4), which makes the lipid transporters good targets for chemoprophylactic treatments. A 14-kDa FABP (Sm14) has been proposed as a vaccine candidate against Schistosoma mansoni in humans and Fasciola hepatica in cattle and sheep (5, ...