Recent improvements in the protein-structure prediction method developed in our laboratory, based on the thermodynamic hypothesis, are described. The conformational space is searched extensively at the united-residue level by using our physics-based UNRES energy function and the conformational space annealing method of global optimization. The lowest-energy coarse-grained structures are then converted to an all-atom representation and energyminimized with the ECEPP͞3 force field. The procedure was assessed in two recent blind tests of protein-structure prediction. During the first blind test, we predicted large fragments of ␣ and ␣؉ proteins [60 -70 residues with C ␣ rms deviation (rmsd) <6 Å]. However, for ␣؉ proteins, significant topological errors occurred despite low rmsd values. In the second exercise, we predicted whole structures of five proteins (two ␣ and three ␣؉, with sizes of 53-235 residues) with remarkably good accuracy. In particular, for the genomic target TM0487 (a 102-residue ␣؉ protein from Thermotoga maritima), we predicted the complete, topologically correct structure with 7.3-Å C ␣ rmsd. So far this protein is the largest ␣؉ protein predicted based solely on the amino acid sequence and a physics-based potential-energy function and search procedure. For target T0198, a phosphate transport system regulator PhoU from T. maritima (a 235-residue mainly ␣-helical protein), we predicted the topology of the whole six-helix bundle correctly within 8 Å rmsd, except the 32 C-terminal residues, most of which form a -hairpin. These and other examples described in this work demonstrate significant progress in physics-based protein-structure prediction.global optimization ͉ thermodynamic hypothesis T o date, the great majority of successful algorithms for proteinstructure prediction are knowledge-based approaches; they make explicit use of homology modeling (1, 2) or fold recognition methods (2-6). This feature even pertains to most of the methods considered as ab initio (7,8), which, in theory, should not make explicit use of structural databases. However, in-depth understanding of the physical principles of formation of protein structure requires the development of physics-based methods for proteinstructure prediction (9). Moreover, such methods will be independent of structural databases used in the training of knowledgebased methods. Furthermore, physics-based methods will enable us to study the structures of proteins that seem to possess a degenerate native state, such as the prion proteins, to simulate protein-folding pathways, to understand the mechanisms of protein folding, and to study interactions of proteins with other biomacromolecules and their assemblies (e.g., nucleic acids, polysaccharides, lipids, etc.). The underlying principle of physics-based methods for proteinstructure prediction is Anfinsen's thermodynamic hypothesis (10), according to which protein molecules adopt the conformations that are the global minima of their potential-energy surfaces. The methods based on this hypoth...