We have carried out a domain analysis of POL32, the third subunit of Saccharomyces cerevisiae DNA polymerase ␦ (Pol ␦). Interactions with POL31, the second subunit of Pol ␦, are specified by the amino-terminal 92 amino acids, whereas interactions with the replication clamp proliferating cell nuclear antigen (PCNA, POL30) reside at the extreme carboxyl-terminal region. Pol32 binding, in vivo and in vitro, to the large subunit of DNA polymerase ␣, POL1, requires the carboxyl-proximal region of Pol32. The amino-terminal region of Pol32 is essential for damage-induced mutagenesis. However, the presence of its carboxyl-terminal PCNA-binding domain enhances the efficiency of mutagenesis, particularly at high loads of DNA damage. In vitro, in the absence of effector DNA, the PCNA-binding domain of Pol32 is essential for PCNA-Pol ␦ interactions. However, this domain has minimal importance for processive DNA synthesis by the ternary DNA-PCNA-Pol ␦ complex. Rather, processivity is determined by PCNA-binding domains located in the Pol3 and/or Pol31 subunits. Using diagnostic PCNA mutants, we show that during DNA synthesis the carboxyl-terminal domain of Pol32 interacts with the carboxyl-terminal region of PCNA, whereas interactions of the other subunit(s) of Pol ␦ localize largely to a hydrophobic pocket at the interdomain connector loop region of PCNA.Accurate and efficient DNA replication in eukaryotic cells requires the participation of at least three essential DNA polymerases, Pol ␣, 1 Pol ␦, and Pol ⑀. Several lines of evidence indicate that Pol ␣ and Pol ␦ function in the initiation and elongation of Okazaki fragment synthesis, respectively (reviewed in Refs. 1 and 2). Replication of the C-A-rich strand at telomeres, by nature a lagging strand process, is also dependent on these two DNA polymerases (3). Under special circumstances, e.g. in a yeast mutant carrying a deletion of the Pol ⑀ polymerization domain, Pol ␦ probably also carries out leading strand synthesis (4 -6). However, analyses of exonuclease-deficient DNA polymerase ␦ and ⑀ strains have revealed a strand specificity of mutation rates and spectra that is most easily reconciled with a dominant role for Pol ⑀ in leading strand synthesis (7-9).Pol ␦ from Saccharomyces cerevisiae consists of three subunits of 125, 55, and 40 kDa (10). An additional small fourth subunit is found in the enzymes from Schizosaccharomyces pombe and human, (11-13). Deletion of the Cdm1 gene for the fourth subunit in S. pombe is genetically silent in the absence of additional mutations in Cdc1 encoding the second subunit (14). However, efficient overproduction of soluble fission yeast Pol ␦ in baculovirus required the presence of Cdm1 (15). The analogous p12 human subunit could be reconstituted with the human three-subunit Pol ␦ into a stable four-subunit enzyme, and significantly stimulated its activity (13).The catalytic subunit and the second subunit, encoded in S. cerevisiae by the POL3 and POL31 (HYS2) genes, respectively, are highly conserved in eukaryotes. The genes are also...