Mutations in EBS1 were identified in Saccharomyces cerevisiae that cosuppress missense, frameshift, and nonsense mutations. Evidence from studies of loss of function and overexpression of EBS1 suggests that Ebs1p affects gene expression by inhibiting translation and that a loss of EBS1 function causes suppression by increasing the rate of translation. Changes in EBS1 expression levels alter the expression of wild-type genes, but, in general, no changes in mRNA abundance were associated with a loss of function or overexpression of EBS1. Translation of a lacZ reporter was increased in strains carrying an ebs1-⌬ mutant gene, whereas translation was decreased when EBS1 was overexpressed. The cap binding protein eIF-4E copurifies with Ebs1p in the absence of RNA, suggesting that the two proteins interact in vivo. Although physical and genetic interactions were detected between Ebs1p and Dcp1p, copurification was RNase sensitive, and changes in the expression of Ebs1p had little to no effect on decapping of the MFA2 transcript. The combined results suggest that Ebs1p inhibits translation, most likely through effects on eIF-4E rather than on decapping. Finally, EBS1 transcript levels are under the control of nonsense-mediated mRNA decay (NMD), providing the first example of an NMD-sensitive transcript whose protein product influences a step in gene expression required for NMD.All eukaryotes have a nonsense-mediated mRNA decay (NMD) pathway that monitors the fidelity of gene expression at the level of RNA surveillance (6). One purpose served by NMD is to identify and degrade transcripts containing errors that cause premature termination of translation, which limits the accumulation of potentially deleterious truncated proteins (40). The UPF genes, which were first identified in Saccharomyces cerevisiae (8,26,27), are represented by orthologs in widely divergent evolutionary branches of the eukaryotes (6) but are absent in prokaryotes and archaea. In addition to RNA surveillance, the Upf proteins control the abundance of hundreds of transcripts in S. cerevisiae (18,28).The mechanism of nonsense transcript decay is intimately related to translation and decapping (31, 49). The Upf proteins and the translation termination factors eRF1 and eRF3 are assembled in a surveillance complex that is recruited to nonsense transcripts to catalyze termination at a premature stop codon, followed by decapping and decay (for a recent summary, see reference 7). Upf1p interacts with the decapping enzyme Dcp2p to promote Xrn1p-mediated decay from the 5Ј end (17, 36) and with Ski7p to promote exosome-mediated decay from the 3Ј end (32, 45). Although the broad outlines of the circuitry leading to NMD are known, the manner in which the surveillance complex affects the interplay between mRNA decay and translation is still unclear.To better understand the relationship between NMD and translation, we devised a selection method to uncover rare hypomorphic mutations in genes coding for either translation factors or additional Upf proteins. The possi...