Numerous transcription accessory proteins cause alterations in chromatin structure that promote the progression of RNA polymerase II (Pol II) along open reading frames (ORFs). The Saccharomyces cerevisiae Paf1 complex colocalizes with actively transcribing Pol II and orchestrates modifications to the chromatin template during transcription elongation. To better understand the function of the Rtf1 subunit of the Paf1 complex, we created a series of sequential deletions along the length of the protein. Genetic and biochemical assays were performed on these mutants to identify residues required for the various activities of Rtf1. Our results establish that discrete nonoverlapping segments of Rtf1 are necessary for interaction with the ATP-dependent chromatin-remodeling protein Chd1, promoting covalent modification of histones H2B and H3, recruitment to active ORFs, and association with other Paf1 complex subunits. We observed transcription-related defects when regions of Rtf1 that mediate histone modification or association with active genes were deleted, but disruption of the physical association between Rtf1 and other Paf1 complex subunits caused only subtle mutant phenotypes. Together, our results indicate that Rtf1 influences transcription and chromatin structure through several independent functional domains and that Rtf1 may function independently of its association with other members of the Paf1 complex.The complex organization of eukaryotic chromosomes acts as a significant impediment to gene expression. In this environment, efficient elongation of a transcript by RNA polymerase II (Pol II) requires a multitude of accessory factors to facilitate its movement along chromatin-assembled genes. The Saccharomyces cerevisiae Paf1 complex colocalizes with Pol II during transcription elongation and is required for the normal expression of a subset of genes (22,34,35,37,55). The Paf1 complex minimally contains five subunits, Paf1, Ctr9, Cdc73, Rtf1, and Leo1, and physically associates with Pol II (22,27,58). Consistent with a role in transcription elongation, physical and genetic interactions between components of the Paf1 complex and other Pol II-associated elongation factors, including the Spt4-Spt5 (yDSIF) and Spt16-Pob3 (yFACT) complexes, have been reported (22,58). Additionally, deletion of genes encoding subunits of the Paf1 complex causes sensitivity to the base analogs 6-azauracil (6-AU) and mycophenolic acid, phenotypes associated with defects in transcription elongation (8,58).Proper elongation of a transcript by Pol II requires efficient navigation of a chromatin template. Nucleosomes, the fundamental components of chromatin, form around octamers of the histone proteins H2A, H2B, H3, and H4. Histones are subject to a myriad of posttranslational modifications, including acetylation, methylation, phosphorylation, ubiquitylation, and sumoylation (reviewed in references 17 and 51; 30, 50). Methylation of individual lysine residues within histones can occur in mono-, di-, or trimethyl states (reviewed in refer...