PBN1 was identified as a gene required for production of protease B (PrB) activity in Saccharomyces cerevisiae. PBN1 encodes an endoplasmic reticulum (ER)-localized, type I membrane glycoprotein and is essential for cell viability. To study the essential function(s) of Pbn1p, we constructed a strain with PBN1 under control of the GAL promoter. Depletion of Pbn1p in this strain abrogates processing of the ER precursor forms of PrB, Gas1p, and Pho8p. Depletion of Pbn1p does not affect exit of proprotease A or procarboxypeptidase Y from the ER, indicating that Pbn1p is not required for global exit from the ER. Depleting Pbn1p leads to a significant increase in the unfolded protein response pathway, accompanied by an expansion of bulk ER membrane, indicating that there is a defect in protein folding in the ER. pbn1-1, a nonlethal allele of PBN1, displays synthetic lethality with the ero1-1 allele (ERO1 is required for oxidation in the ER) and synthetic growth defects with the cne1⌬ allele (CNE1 encodes calnexin). ER-associated degradation of a lumenal substrate, CPY*, is blocked in the absence of Pbn1p. These results suggest that Pbn1p is required for proper folding and͞or the stability of a subset of proteins in the ER. Thus, Pbn1p is an essential chaperone-like protein in the ER of yeast.chaperone ͉ protein folding ͉ unfolded protein response T he endoplasmic reticulum (ER) in eukaryotes is home to a variety of chaperones and enzymes that monitor the status of every protein that enters the secretory pathway (1). With the help of these chaperones and enzymes, transiting proteins and ER resident proteins are folded properly into their native conformations. This quality-control pathway also includes protein disulfide-bond formation and glycosylation. Once folded, the proteins are either retained in the ER or transported to the Golgi apparatus, from which they travel to their final destinations. Many factors can perturb this ER folding machinery, including inhibition of N-linked glycosylation, treatment with calcium ionophores, alteration in the oxidation state of the ER, and misfolding of secretory proteins, leading to a block in exit from the ER. In most cases, these kinds of perturbations induce the unfolded protein response (UPR) pathway; as a result, transcription of chaperone genes and other genes involved in protein folding are up-regulated (2, 3). In some cases, misfolding of proteins leads to retrotranslocation from the ER and subsequent degradation of the protein by the cytoplasmic proteasome via a pathway called ER-associated degradation (ERAD) (4).PBN1 is an essential gene that was identified in a screen for mutants that were deficient for protease B (PrB) activity (5). Pbn1p is a type I membrane glycoprotein and resides in the ER of yeast. No phenotypic change other than PrB deficiency and a mild sensitivity to the reducing agent DTT has been associated with the pbn1-1 allele (5). The PrB precursor undergoes glycosylation and four proteolytic cleavages during maturation (6, 7). The pbn1-1 strain lacks PrB...