Cyclin T1, together with the kinase CDK9, is a component of the transcription elongation factor P-TEFb which binds the human immunodeficiency virus type 1 (HIV-1) transactivator Tat. P-TEFb facilitates transcription by phosphorylating the carboxy-terminal domain (CTD) of RNA polymerase II. Cyclin T1 is an exceptionally large cyclin and is therefore a candidate for interactions with regulatory proteins. We identified granulin as a cyclin T1-interacting protein that represses expression from the HIV-1 promoter in transfected cells. The granulins, mitogenic growth factors containing repeats of a cysteine-rich motif, were reported previously to interact with Tat. We show that granulin formed stable complexes in vivo and in vitro with cyclin T1 and Tat. Granulin bound to the histidine-rich domain of cyclin T1, which was recently found to bind to the CTD, but not to cyclin T2. Binding of granulin to P-TEFb inhibited the phosphorylation of a CTD peptide. Granulin expression inhibited Tat transactivation, and tethering experiments showed that this effect was due, at least in part, to a direct action on cyclin T1 in the absence of Tat. In addition, granulin was a substrate for CDK9 but not for the other transcription-related kinases CDK7 and CDK8. Thus, granulin is a cellular protein that interacts with cyclin T1 to inhibit transcription.Human cyclin T1 is a component of positive transcription elongation factor b (P-TEFb) and plays a key role in the activation of human immunodeficiency virus type 1 (HIV-1) transcription by the viral protein Tat (trans-activator of transcription). Cyclin T1 was first isolated as a Tat-binding protein (61) and an orthologue of Drosophila cyclin T (39, 46, 47). P-TEFb contains cyclin T1 and the cyclin-dependent kinase CDK9. This kinase phosphorylates the carboxy-terminal domain (CTD) of the large subunit of RNA polymerase II, thereby facilitating the transition of polymerase II into a productive elongation mode (22, 43, 44, 48-50, 55, 70). The stimulation by Tat of HIV-1 transcriptional elongation and replication is dependent on P-TEFb that contains functional CDK9 and cyclin T1 (9, 11).CDK9 also associates with two additional related cyclins, T2a and T2b, which share their first 642 amino acids. Cyclin T2-CDK9 complexes phosphorylate polymerase II but do not participate in HIV transactivation. The cyclin boxes in the N-terminal regions of cyclins T1 and T2 are 81% identical, while their C-terminal regions are less conserved (47). In spite of this high degree of identity, Tat fails to bind to the T2 cyclins because they lack a crucial cysteine residue at position 261 (14,62). This cysteine is in the Tat-TAR recognition motif of human cyclin T1 that is necessary for its interactions with Tat and TAR, the transactivation response element in the 5Ј untranslated region of all HIV-1 mRNAs (for a review, see reference 26).The activity of the ternary complex P-TEFb-Tat-TAR is modulated by multiple interactions among its components (10,13,22,68). Furthermore, cyclin T1 and CDK9 are present in large...