Artemia franciscana embryos undergo encystment, developmental arrest and diapause, the last characterized by profound metabolic dormancy and extreme stress resistance. Encysted embryos contain an abundant small heat shock protein termed p26, a molecular chaperone that undoubtedly has an important role in development. To understand better the role of p26 in Artemia embryos, the structural and functional characteristics of full-length and truncated p26 expressed in Escherichia coli and COS-1 cells were determined. p26 chaperone activity declined with increasing truncation of the protein, and those deletions with the greatest adverse effect on protection of citrate synthase during thermal stress had the most influence on oligomerization. When produced in either prokaryotic or eukaryotic cells the p26 ␣-crystallin domain consisting of amino acid residues 61-152 existed predominantly as monomers, and p26 variants lacking the amino-terminal domain but with intact carboxyl-terminal extensions were mainly monomers and dimers. The amino terminus was, therefore, required for efficient dimer formation. Assembly of higher order oligomers was enhanced by the carboxyl-terminal extension, although removing the 10 carboxyl-terminal residues had relatively little effect on oligomerization and chaperoning. Full-length and carboxyl-terminal truncated p26 resided in the cytoplasm of transfected COS-1 cells; however, variants missing the complete amino-terminal domain and existing predominantly as monomers/dimers entered the nuclei. A mechanism whereby oligomer disassembly assisted entry of p26 into nuclei was suggested, this of importance because p26 translocates into Artemia embryo nuclei during development and stress. However, when examined in Artemia, the p26 oligomer size was unchanged under conditions that allowed movement into nuclei, suggesting a process more complex than just oligomer dissociation.The small heat shock proteins (sHsps), 1 characterized by a conserved ␣-crystallin domain exhibiting an immunoglobulinlike fold bordered by variable amino-and carboxyl-terminal extensions (1-7), function as molecular chaperones. The molecular mass of sHsps ranges from 12 to 43 kDa, and most oligomerize by a multistep process often with dimers as stable suboligomeric units (8, 9), although for bovine ␣B-crystallin monomers may be basic building blocks (10). For sHsps such as Hsp20 (11) and Hsp22 (12), dimers are the predominant complex, and they exhibit chaperone activity. Of medical significance, ␣A-crystallin truncations occur in mammalian lens, suggesting a relationship between carboxyl-terminal modification and cataract (13,14). Also, dropping either 13 or 25 carboxylterminal residues from human ␣B-crystallin causes myofibrillar myopathy, with modified proteins exerting dominant negative effects (15). The truncated and normal ␣B-crystallins appear to interact, yielding oligomers slightly smaller than those generated by wild type protein.Assembly mechanisms and the resulting oligomers vary for sHsps from different sources (2, 4,...