Yeast TFIID comprises the TATA binding protein and 14 TBP-associated factors (TAF II s), nine of which contain histone-fold domains (HFDs). The C-terminal region of the TFIID-specific yTAF4 (yTAF II 48) containing the HFD shares strong sequence similarity with Drosophila (d)TAF4 (dTAF II 110) and human TAF4 (hTAF II 135). A structure/function analysis of yTAF4 demonstrates that the HFD, a short conserved Cterminal domain (CCTD), and the region separating them are all required for yTAF4 function. Temperaturesensitive mutations in the yTAF4 HFD ␣2 helix or the CCTD can be suppressed upon overexpression of yTAF12 (yTAF II 68). Moreover, coexpression in Escherichia coli indicates direct yTAF4-yTAF12 heterodimerization optimally requires both the yTAF4 HFD and CCTD. The x-ray crystal structure of the orthologous hTAF4-hTAF12 histone-like heterodimer indicates that the ␣3 region within the predicted TAF4 HFD is unstructured and does not correspond to the bona fide ␣3 helix. Our functional and biochemical analysis of yTAF4, rather provides strong evidence that the HFD ␣3 helix of the TAF4 family lies within the CCTD. These results reveal an unexpected and novel HFD organization in which the ␣3 helix is separated from the ␣2 helix by an extended loop containing a conserved functional domain.Accurate transcription initiation at protein-coding genes by RNA polymerase II requires the assembly of a multiprotein complex around the mRNA start site (1). Transcription factor TFIID is one of the general factors involved in this process. TFIID comprises the TATA binding protein (TBP), 1 responsible for specific binding to the TATA element found in many RNA polymerase II promoters, and a set of TBP-associated factors (TAF II s) (2, 3). A subset of TAF II s are present not only in TFIID but also in the SAGA, PCAF, STAGA, and TFTC complexes that lack TBP but are involved in RNA polymerase II transcription (4 -8). A subset of TAF II s are also found in a macromolecular complex containing Drosophila polycomb group proteins (9).