Thyroid hormone (T3) nuclear receptors (TR) are ligand-dependent transcription factors which regulate growth, differentiation, and development. One emerging hypothesis suggests that TR mediate these diverse effects via a large network of coregulators. Recently, we found that TR-mediated transcriptional responses varied in six cell lines derived from different tissues. We therefore used human TR subtype 1 (TR1) as bait to search for coregulators in human colon carcinoma RKO cells with a yeast two-hybrid system. RKO cells exhibited T3-dependent and -independent transcriptional activation. One of the three positive clones was identified as Ear-2, which is a distant member of the chick ovalbumin upstream promoter-transcription factors of the orphan nuclear receptor family. The physical interaction between Ear-2 and TR1 was further confirmed by specific binding of Ear-2 to glutathione S-transferase-TR1. In addition, Ear-2 was found to associate with TR1 in cells. As a result of this physical interaction, binding of TR1 to the T3 response elements was inhibited. Using reporter systems, we found that both the basal activation and the T3-dependent activation mediated by TR1 were repressed by Ear-2 in CV1 cells. In RKO cells, however, the T3-independent transcriptional activity was more sensitive to the repression effect of Ear-2 than the T3-dependent transcriptional activity. The repression effect of Ear-2 was reversed by steroid hormone receptor coactivator 1. These results suggest that TR-mediated responses reflect a balance of corepressors and coactivators in cells. These findings further strengthen the hypothesis that the diverse activities of TR are achieved via a large network of coregulators that includes Ear-2.Thyroid hormone, 3,3Ј,5-triiodo-L-thyronine (T3), is important for the growth, development, and differentiation of vertebrates. It is also essential for maintaining metabolic-energetic homeostasis. These biological activities of T3 are mediated by T3 nuclear receptors (TR), which are members of the steroid hormone and retinoic acid receptor superfamily (28). Like other nuclear receptors, TR consists of modular domains which include the amino-terminal A/B domain, the central DNA binding domain (domain C), and the hormone binding domains (domains D and E). Two TR genes, ␣ and , located on chromosomes 17 and 3, respectively, give rise to receptor isoforms (␣1, ␣2, 1, and 2) by alternative splicing. TR mediates the action of T3 by binding to the cis elements on the promoter regions of target genes. TR binds to specific sequences known as T3 response elements (TRE), containing the consensus AGGTCA half-site binding motifs arranged in an inverted repeat, everted repeat, or direct repeat separated by 4 nucleotides (DR4) (4). The transcriptional activity of TR depends not only on the types of TRE but also on T3. In the absence of T3, TR acts as a repressor. Binding of T3 leads TR to function as a transcriptional activator (11).While the mechanism(s) underlying the repression and activation functions of T...