The TRAP coactivator complex is a large, multisubunit complex of nuclear proteins which associates with nuclear hormone receptors (NRs) in the presence of cognate ligand and stimulates NR-mediated transcription. A single subunit, TRAP220, is thought to target the entire complex to a liganded receptor through a domain containing two of the signature LXXLL motifs shown previously in other types of coactivator proteins to be essential for mediating NR binding. In this work, we demonstrate that each of the two LXXLL-containing regions, termed receptor binding domains 1 and 2 (RBD-1 and RBD-2), is differentially preferred by specific NRs. The retinoid X receptor (RXR) displays a weak yet specific activation function 2 (AF2)-dependent preference for RBD-1, while the thyroid hormone receptor (TR), vitamin D 3 receptor (VDR), and peroxisome proliferator-activated receptor all exhibit a strong AF2-dependent preference for RBD-2. Using site-directed mutagenesis, we show that preference for RBD-2 is due to the presence of basic-polar residues on the amino-terminal end of the core LXXLL motif. Furthermore, we show that the presence and proper spacing of both RBD-1 and RBD-2 are required for an optimal association of TRAP220 with RXR-TR or RXR-VDR heterodimers bound to DNA and for TRAP220 coactivator function. On the basis of these results, we suggest that a single molecule of TRAP220 can interact with both subunits of a DNA-bound NR heterodimer.Nuclear hormone receptors (NRs) make up a family of ligand-activated transcription factors that regulate the expression of target genes involved in development, differentiation, and homeostasis (39,47,60). The ligands for NRs, small hydrophobic molecules including steroids, retinoids, thyroid hormone, and vitamin D 3 , bind to the C-terminal ligand binding domain (LBD) of their cognate NR and induce conformational changes which modulate receptor activity (44). Transcriptional activation by NRs can be mediated by two separable activation functions (AFs): AF1, located at the N terminus (30,45,56), and AF2, located in the LBD (3,11,15,52). While AF1 is poorly conserved among NR family members, the AF2 domain is highly conserved and essential for ligand-dependent activation (11,47). Recent structural studies suggest that ligand binding regulates AF2 activity by changing the stereospecific position of the most C-terminal LBD ␣ helix (helix 12), a motif previously shown to be indispensable for AF2 function (44, 47). The ligand-induced repositioning of helix 12 places it in close proximity to ␣ helices 3, 4, and 5 and is thought to generate a hydrophobic binding surface for transcriptional coactivator proteins (12,25,46,53).The best-characterized NR coactivators identified thus far are members of the SRC/p160 family of proteins, which include SRC-1/NCoA-1, TIF2/GRIP1, and pCIP/RAC3/AIB-1/ ACTR/TRAM-1 (reviewed in references 42 and 58). While the exact mechanism of action of the SRC/p160 proteins is unclear, their ability to associate with histone acetyltransferases (HATs) such as CBP/p300 (...