The G protein ␥ complex regulates a wide range of effectors, including the phospholipase C isozymes (PLCs). Different domains on the  subunit are known to contact phospholipase C and affect its regulation. In contrast, the role of the ␥ subunit in G␥ modulation of PLC function is not known. Results here show that the ␥ subunit C-terminal domain is involved in mediating G␥ interactions with phospholipase C. Mutations were introduced to alter the position of the post-translational prenyl modification at the C terminus of the ␥ subunit with reference to the  subunit. These mutants were appropriately post-translationally modified with the geranylgeranyl moiety. A deletion that shortened the C-terminal domain, insertions that extended this domain, and a point mutation, F59A, that disrupted the interaction of this domain with the  subunit were all affected in their ability to activate PLC to varying degrees. All mutants, however, interacted equally effectively with the G o ␣ subunit. The results indicate that the G protein ␥ subunit plays a direct role in the modulation of effector function by the ␥ complex.The G protein ␥ complex modulates the function of a number of effectors (1). The precise molecular mechanisms underlying the activation or inhibition of an effector by the G protein ␥ complex is not clear. Regions on the  subunit and effectors important for interaction between G␥ and effector molecules have been identified. A domain on the G protein  subunit was initially shown to contact domains on several effector molecules (2). Later studies have identified several regions on the  subunit that interact with effectors divided into regions that are involved in stabilizing interaction and others involved in modulating effector activity (3-8). Although there is increasing evidence that the G protein ␥ subunits specify contact with receptors (9, 10), their role in effector regulation has been less clear. Early evidence indicated that the prenyl modification at the C terminus of the ␥ subunit is a requirement for the ␥ complex action on effectors (11). More recently, it has been shown that if the type of prenylation on ␥ subunits, farnesyl (C15) or geranylgeranyl (C20), is altered through mutational alteration of the protein, the ability of the mutant ␥ complex to act on effectors is altered (12). These results confirmed the role for the prenyl moiety in effector activation. The reasons for the requirement of the prenyl modification were, however, not clear. It was unclear whether the prenyl group was required because it assisted the ␥ complex association with membranes, and as a consequence, brought the ␥ complex in close proximity to membrane-bound effector molecules or whether the prenyl group actually interacted with effectors and stabilized this critical protein-protein interaction event. Recent evidence supports the latter mechanism, indicating that the prenyl moiety physically contacts at least one effector, PLC, 1 and facilitates ␥ interaction with PLC (13).To further define the role o...