proteins of the LD surface need unconventional targeting mechanisms ( 3 ). Previous studies on targeting of proteins to LDs have pointed to the importance of hydrophobic stretches or amphipatic domains in soluble proteins ( 4-12 ). For integral proteins, hydrophobic domains, often located at the end of the polypeptide chain (13)(14)(15)(16)(17)(18)(19), and charged residues ( 20 ) have been found to be essential for droplet targeting. On theoretical grounds, we have proposed that targeting of integral proteins to LDs requires a hairpin-like monotopic topology ( 21 ), but experimental evidence for a direct connection between topology and targeting is lacking so far. Additional complexity comes from the fact that many integral proteins of LDs exhibit additional localizations, sometimes to the plasma membrane ( 22-27 ), but mostly to the endoplasmic reticulum (ER) ( 28-34 ). One such protein is ancient ubiquitous protein 1 (AUP1) that specifi cally localizes to . AUP1 is a 410 amino acids long, integral protein with a single predicted membrane domain ( 36, 37 ). The membrane domain of AUP1 is located internally and both the N and C termini of AUP1 are facing the cytoplasm, resulting in monotopic/hairpin topology ( 36 ).AUP1 has multiple functional domains and is reported to facilitate ER-associated protein degradation, inside-out signaling in platelets, and neutral lipid storage ( 35-39 ). Domains important for a function of AUP1 in ER-associated degradation are found in its C-terminal region. The CUE (coupling of ubiquitin to ER degradation) domain binds dislocation substrates and components of the ER quality control machinery ( 37 ), and the G2 binding region (G2BR) domain recruits a specifi c E2 ubiquitin conjugase, Ube2g2 ( 36 ). The function of the N-terminal region of AUP1 is lesswell understood. It contains the membrane domain and a predicted acyltransferase domain, which was proposed to Abstract Ancient ubiquitous protein 1 (AUP1) is a multifunctional protein, which acts on both lipid droplets (LDs) and the endoplasmic reticulum (ER) membrane. Double localization to these two organelles, featuring very different membrane characteristics, was observed also for several other integral proteins, but little is known about the signals and mechanisms behind dual protein targeting to ER and LDs. Here we dissect the AUP1 targeting signals by analyses of localization and topology of several deletion and point mutants. We found that AUP1 is inserted into the membrane of the ER in a monotopic hairpin fashion, and subsequently transported to the hemi-membrane of LDs. A single domain localized in the N-terminal part of AUP1 enables its ER residence, the monotopic insertion, and the LD localization. Different specifi c residues within this multifunctional domain are responsible for achieving the complex spatial distribution pattern. A mutation of three amino acids, which changes AUP1 topology from hairpin to transmembrane, abolishes LD localization. These fi ndings suggest that the cell is able to target a protein to mult...