Although efforts have been made to identify circadian-controlled genes regulating cell cycle progression and cell death, little is known about the metabolic signals modulating circadian regulation of gene expression. We identify heme, an iron-containing prosthetic group, as a regulatory ligand controlling human Period-2 (hPer2) stability. Furthermore, we define a novel heme-regulatory motif within the C terminus of hPer2 (SC 841 PA) as necessary for heme binding and protein destabilization. Spectroscopy reveals that whereas the PAS domain binds to both the ferric and ferrous forms of heme, SC 841 PA binds exclusively to ferric heme, thus acting as a redox sensor. Consequently, binding prevents hPer2 from interacting with its stabilizing counterpart cryptochrome. In vivo, hPer2 downregulation is suppressed by inhibitors of heme synthesis or proteasome activity, while SA 841 PA is sufficient to stabilize hPer2 in transfected cells. Moreover, heme binding to the SC 841 PA motif directly impacts circadian gene expression, resulting in altered period length. Overall, the data support a model where heme-mediated oxidation triggers hPer2 degradation, thus controlling heterodimerization and ultimately gene transcription.Cellular homeostasis depends on a delicate balance between metabolic activity and gene expression. Heme is a prosthetic group essential for transport and storage of oxygen that is involved in the generation of cellular energy by respiration and synthesis and degradation of lipids and in oxidative damage. Heme-based sensor proteins detect and respond to variations in oxygen, carbon monoxide, and nitric oxide levels and cellular redox state by acting on transcription, translation, protein translocation, and protein assembly (8,25).Heme binding to transcription factors is found in both prokaryotes and lower eukaryotes; however, only three cases have been identified in higher eukaryotes: the basic leucine zipper transcription factor Bach1, the circadian transcription factor NPAS2, and the nuclear orphan receptor 23,30,