In vertebrates, a key step in the biosynthesis of cholesterol and steroid hormones is the conversion of (S)-2,3-oxidosqualene to lanosterol. The enzyme that catalyzes this complex cyclization/ rearrangement step via the protosteryl cation intermediate is lanosterol synthase ((S)-2,3-epoxysqualene mutase (cyclizing, lanosterol forming), EC 5.4.99.7). Because of the crucial role that lanosterol synthase plays in cholesterol biosynthesis, there is great interest in the identification of drugs that target this enzyme for anticholesteremic purposes. Although most studies on lanosterol synthase in the past have focused on the structural and biochemical functions of this enzyme, almost nothing is known concerning how the synthesis of lanosterol synthase is regulated. Here, we report that histone deacetylase 3 (HDAC3) represses transcription from the lanosterol synthase promoter. Overexpression of HDAC3 decreases, whereas knockdown of HDAC3 by small interfering RNA increases, endogenous lanosterol synthase mRNA in cells. Similarly, in transient transfection assays, overexpression of HDAC3 decreases, whereas depletion of HDAC3 increases, expression of a reporter gene under the control of the lanosterol synthase promoter. Stable cell lines that overexpress HDAC3 show a decrease in lanosterol synthase mRNA and have lower cholesterol concentrations compared with parental cells. Extensive promoter analyses coupled with chromatin immunoprecipitation assays reveal that the transcription factor YY1 binds to and recruits HDAC3 to the lanosterol synthase promoter. Together, our results demonstrate that HDAC3 represses the synthesis of a key regulatory enzyme and reveal a novel mechanism by which the cholesterol biosynthetic pathway can be regulated.Cholesterol, cholesterol metabolites, and biosynthetic precursors of cholesterol play essential roles in cellular membrane physiology, dietary nutrient absorption, reproductive biology, stress responses, salt and water balance, and calcium metabolism (1). Although important for many normal cellular functions, cholesterol can have negative effects when it reaches excess concentrations, contributing to several diseases (2), of which the most notable is atherosclerosis.Cellular cholesterol homeostasis is achieved by influx and efflux and intracellular transport as well as by regulation of cholesterol synthesis (3). The rate-limiting enzyme in cholesterol synthesis is HMG-CoA reductase (HMGR), 2 and high cholesterol accelerates degradation of HMGR (4). Another mechanism in the regulation of cholesterol synthesis involves the membrane-bound transcription factors sterol regulatory element-binding proteins (SREBPs). The promoters of sterolregulated genes contain a sterol response element. SREBPs are synthesized as transcriptionally inactive endoplasmic reticulum transmembrane proteins. At high cholesterol levels within the cell, SREBPs remain in the endoplasmic reticulum in association with two proteins, SCAP and Insig (5). A decrease in cholesterol levels causes a conformational change in th...