Protein B23 is a multifunctional nucleolar protein whose cellular location and characteristics strongly suggest that it is a ribosome assembly factor. The protein has nucleic acid binding, ribonuclease, and molecular chaperone activities. To determine the contributions of unique polypeptide segments enriched in certain classes of amino acid residues to the respective activities, several constructs that produced N-and Cterminal deletion mutant proteins were prepared. The C-terminal quarter of the protein was shown to be necessary and sufficient for nucleic acid binding. Basic and aromatic segments at the N-and C-terminal ends, respectively, of the nucleic acid binding region were required for activity. The molecular chaperone activity was contained in the N-terminal half of the molecule, with important contributions from both nonpolar and acidic regions. The chaperone activity also correlated with the ability of the protein to form oligomers. The central portion of the molecule was required for ribonuclease activity and possibly contains the catalytic site; this region overlapped with the chaperone-containing segment of the molecule. The C-terminal, nucleic acidbinding region enhanced the ribonuclease activity but was not essential for it. These data suggest that the three activities reside in mainly separate but partially overlapping segments of the polypeptide chain.Ribosome assembly is a multistep process that utilizes numerous proteins and small nucleolar RNAs (1, 2). One candidate for a ribosome assembly factor is an abundant protein called B23 (also known as nucleophosmin/NPM (3), NO38 (4), or numatrin (5)) whose location, abundance, and multiple activities suggest that it plays a major role in ribosome biogenesis. This is supported by the ability of protein B23 to bind nucleic acids (6, 7) and by its association with maturing preribosomal ribonucleoprotein particles (4,8,9). Treatment of cells with drugs that inhibit preribosomal RNA processing or synthesis (10, 11) causes translocation of B23 to the nucleoplasm, which further suggests its presence in nascent preribosomal particles. Finally, protein B23 possesses intrinsic ribonuclease activity that has been implicated in the processing of preribosomal RNA in the internal transcribed spacer region 2 region (12, 13).Protein B23 interacts with other nucleolar proteins, including nucleolin (14), protein p120 (15), and the HIV-1 Rev protein (16). Its ability to shuttle between the nucleus and cytoplasm (17), bind nuclear localization signal containing peptides (18), and stimulate import of proteins into the nucleus (18) suggested a role in nuclear import. The latter activity might be explained by its ability to act as a molecular chaperone (19). In normal cells, this activity may aid in the transport of ribosomal or other nucleolar proteins from their site of synthesis into the nucleus or nucleolus. Alternatively, protein B23 could serve as a chaperone in preventing aggregation of proteins in the very crowded environment of the nucleolus during ribosome assemb...