We present a lattice Monte Carlo study to examine the effect of denaturants on the folding rates of simplified models of proteins. The two-dimensional model is made from a three-letter code mimicking the presence of hydrophobic, hydrophilic, and cysteine residues. We show that the rate of folding is maximum when the effective hydrophobic interaction eH is approximately equal to the free energy gain es upon forming disulfide bonds. In the range 1 5 t H / e S 5 3, multiple paths that connect several intermediates to the native state lead to fast folding. It is shown that at a fixed temperature and eS the folding rate increases as eH decreases. An approximate model is used to show that eH should decrease as a function of the concentration of denaturants such as urea or guanidine hydrochloride. Our simulation results, in conjunction with this model, are used to show that increasing the concentration of denaturants can lead to an increase in folding rates. This occurs because denaturants can destabilize the intermediates without significantly altering the energy of the native conformation. Our findings are compared with experiments on the effects of denaturants on the refolding of bovine pancreatic trypsin inhibitor and ribonuclease TI. We also argue that the phenomenon of denaturant-enhanced folding of proteins should be general.Keywords: denaturants; energy landscape; folding rates; lattice model It is believed that, in most instances, denaturants such as urea or guanidine hydrochloride (Gdn-Hcl) strongly decrease the rate of folding as their concentration is increased. However, there are examples in which the rate of folding is increased as the concentration of denaturants increases. One of the earliest experiments that demonstrated this effect was in the refolding of carbonic anhydrase (McCoy et al., 1980). Two more recent examples in which this has been illustrated nicely is the refolding of ribonuclease TI (Kiefhaber et al., 1992) and the rearrangement of a kinetically trapped native-like intermediate in bovine pancreatic trypsin inhibitor (BPTI) (Weissman & Kim, 1991). We now discuss the features of these experiments as they pertain to this article.It has been suggested that the folding kinetics of RNase T1 (Kiethaber et al., 1992) is complex, involving parallel pathways. In the predominant pathway, the rapidly formed partially ordered structure reaches the native conformation through a series of two slow kinetic steps. Kiefhaber et al. have argued that the slowest step in this pathway, with time constant of 7,000 s at pH 5 at 10 "C, involves proline isomerization. The very small rate constant for this first-order kinetics is apparently unusually slow compared with other proteins whose rate-determining step also involves pro- line isomerization. These experiments seem to indicate that the incorrect isomer (the C conformation in RNase TI) is trapped in a stable native-like conformation. Consequently, the addition of urea or Gdn-Hcl in concentrations that does not denature the protein could destabilize t...