We reported previously that deletion of the 50-amino acid NH 2 -terminal A/B domain of the chicken (c) or rat thyroid hormone (T 3 ) receptor-␣ (T 3 R␣) decreased the T 3 -dependent stimulation of genes regulated by native thyroid hormone response elements (TREs). This requirement of the NH 2 -terminal A/B domain for transcriptional activation was mapped to amino acids 21-30 of cT 3 R␣. Expression of transcription factor IIB (TFIIB) in cells was shown to enhance T 3 -dependent transcriptional activation by cT 3 R␣, and this enhancement by TFIIB was dependent on the same 10-amino acid sequence. In vitro binding studies indicated that cT 3 R␣ interacts efficiently with TFIIB, and this interaction requires amino acids 23 KRKRK 27 in the A/B domain. In this study we document the functional importance of these five basic residues in transcriptional activation by cT 3 R␣, further supporting the biological significance of these residues and their interaction with TFIIB. Interestingly, we also find that the same amino acids also affect DNA binding and dimerization of cT 3 R␣. Gel mobility shift assays reveal that a cT 3 R␣ mutant that has all five basic amino acids changed from 23 KRKRK 27 to 23 TITIT 27 binds to a palindromic TRE predominantly as a homodimer, whereas cT 3 R␣ with the wild-type 23 KRKRK 27 sequence binds predominantly as a monomer. This results from both a marked decrease in the ability of the cT 3 R␣ mutant to bind as a monomer and from an enhanced ability to dimerize as reflected by an increase in DNA-bound T 3 R-retinoic X receptor heterodimers. These effects of 23 KRKRK 27 on DNA binding, dimerization, transcriptional activation, and the association of T 3 R␣ with TFIIB support the notion that this basic amino acid motif may influence the overall structure and function of T 3 R␣ and, thus, play a role in determining the distinct context-dependent transactivation potentials of the individual T 3 R isoforms.Steroid, retinoid, and thyroid hormone nuclear receptors are ligand-dependent transcription factors that couple extracellular signals directly to transcriptional responses. These receptors activate or repress transcription of target genes by binding to specific DNA sequences referred to as hormone response elements (HREs) 1 (1). The nuclear receptor superfamily can be divided into the steroid hormone receptor family and the thyroid hormone/retinoid receptor family (1, 2), which includes receptors that mediate the effects of thyroid hormone [L-triiodothyronine (T 3 ) (the T 3 Rs), all-trans-retinoic acid (the RARs), 9-cis-retinoic acid (the RARs and RXRs), and 1,25-dihydroxyvitamin D 3 as well as several orphan receptors (e.g. COUP-TF, c-erbA␣2) whose ligand(s), if any, are unknown (3-5).The T 3 Rs are encoded by two distinct but closely related genes (␣ and ) which, in humans (h), map to chromosomes 17 and 3, respectively (6). Each gene expresses several alternatively spliced isoforms. The T 3 R␣ gene in the rat (r) and man expresses the T 3 -binding isoform T 3 R␣1 along with c-erbA␣2, which does...