Mammalian Twist1, a master regulator in development and a key factor in tumorigenesis, is known to repress transcription by several mechanisms and is therefore considered to mediate its function mainly through inhibition. A role of Twist1 as transactivator has also been reported but, so far, without providing a mechanism for such an activity. Here we show that heterodimeric complexes of Twist1 and E12 mediate E-boxdependent transcriptional activation. We identify a novel Twist1 transactivation domain that coactivates together with the less potent E12 transactivation domain. We found three specific residues in the highly conserved WR domain to be essential for the transactivating function of murine Twist1 and suggest an ␣-helical structure of the transactivation domain.When the human genome was sequenced, one of the surprising results was the low number of genes, summing up to only about one-tenth of the expected number. Explanations for this apparent lack of genes were found in differential gene splicing and protein modification as well as in the combinatorial use of regulating signals and transcription factors. A third explanation, multifunctional proteins, has so far received little attention. Here we show that the basic helix-loop-helix (bHLH) 2 protein Twist1, a known transcriptional inhibitor, can also function as an activator, depending on the regulatory sequences of the target genes. Identification of this additional molecular mechanism may aid in explaining the pleiotropic effects of Twist1 in development and in understanding the complex phenotype of the human Saethre-Chotzen syndrome, which is caused by haploid insufficiency of Twist1.Tissue-specifically expressed bHLH transcription factors are important regulators during embryonic development and postnatal life. They mediate their function through binding to DNA elements of the NCANNTGN consensus sequence termed E-boxes (1, 2). The evolutionarily conserved molecular mechanisms leading to DNA binding have been firmly established. In brief, two amphipathic ␣-helices connected by a loop region form the HLH motif, a protein interaction domain through which bHLH factors form homo-or heterodimers. A region of basic residues N-terminal to the HLH motif is necessary for DNA binding. Members of a class of ubiquitously expressed bHLH factors termed E-proteins serve as activating dimerization partners for tissue-specific bHLH factors (3, 4). In general, single E-boxes are sufficient for bHLH responsiveness, yet cooperative binding to dual E-boxes has been observed (5). Id proteins constitute a specific class of inhibitory HLH factors, which are unable to bind DNA due to a lack of basic regions (6). The Id proteins consequently function as negative regulators.Although dimerization and DNA binding are mechanistically similar for all bHLH proteins, the transactivational mechanisms are often of different evolutionary origin. The closely related myogenic bHLH factors Myf5 and MyoD1 both up-regulate muscle-specific genes such as muscle creatine kinase, yet the sequence...