We find that prothymosin alpha (PT␣) selectively enhances transcriptional activation by the estrogen receptor (ER) but not transcriptional activity of other nuclear hormone receptors. This selectivity for ER is explained by PT␣ interaction not with ER, but with a 37-kDa protein denoted REA, for repressor of estrogen receptor activity, a protein that we have previously shown binds to ER, blocking coactivator binding to ER. We isolated PT␣, known to be a chromatin-remodeling protein associated with cell proliferation, using REA as bait in a yeast two-hybrid screen with a cDNA library from MCF-7 human breast cancer cells. PT␣ increases the magnitude of ER␣ transcriptional activity three-to fourfold. It shows lesser enhancement of ER transcriptional activity and has no influence on the transcriptional activity of other nuclear hormone receptors (progesterone receptor, glucocorticoid receptor, thyroid hormone receptor, or retinoic acid receptor) or on the basal activity of ERs. In contrast, the steroid receptor coactivator SRC-1 increases transcriptional activity of all of these receptors. Cotransfection of PT␣ or SRC-1 with increasing amounts of REA, as well as competitive glutathione S-transferase pulldown and mammalian two-hybrid studies, show that REA competes with PT␣ (or SRC-1) for regulation of ER transcriptional activity and suppresses the ER stimulation by PT␣ or SRC-1, indicating that REA can function as an anticoactivator in cells. Our data support a model in which PT␣, which does not interact with ER, selectively enhances the transcriptional activity of the ER but not that of other nuclear receptors by recruiting the repressive REA protein away from ER, thereby allowing effective coactivation of ER with SRC-1 or other coregulators. The ability of PT␣ to directly interact in vitro and in vivo with REA, a selective coregulator of the ER, thereby enabling the interaction of ER with coactivators, appears to explain its ability to selectively enhance ER transcriptional activity. These findings highlight a new role for PT␣ as a coregulator activity-modulating protein that confers receptor specificity. Proteins such as PT␣ represent an additional regulatory component that defines a novel paradigm enabling receptor-selective enhancement of transcriptional activity by coactivators.Nuclear hormone receptors encompass the steroid/thyroid/ retinoid receptor superfamily and are ligand-inducible transcription factors. These receptors modulate the transcription of specific genes by interacting with hormone response elements located near the target gene promoter (17,21,35). The estrogen receptor (ER), a member of the steroid receptor family, mediates the stimulatory effects of estrogens and the inhibitory effects of antiestrogens in breast cancer and other estrogen target cells. ER-regulated genes are involved in many biological processes, including cell growth and differentiation, morphogenesis, and programmed cell death (15, 16). The gene transcriptional activity by nuclear hormone receptors is enhanced or repressed b...