A eukaryotic initiation factor 2 (eIF-2)-ancillary protein factor Co-eIF-2 promotes displacement of GDP from eIF-2GDP and facilitates ternary complex (Met-tRNArf eIF-2-GTP) formation in the presence of Me'. Heme-regulat-ed protein synthesis inhibitor, HRI, phosphorylates the a-subunit of eIF-2 and thus inhibits ternary complex formation as Co-eIF-2 does not displace GDP from eIF-2a(P)-GDP. RF, a high molecular weight cell supernatant factor, reverses protein synthesis inhibition in heme-deficient reticulocyte lysates and also reverses HRI inhibition of ternary complex formation. RF contains Co-eIF-2 activity. In addition, an active RF preparation contains excess a-subunit of eIF-2 in the free and unphosphorylated form and this a-subunit of eIF-2 is not phosphorylated by HRI and ATP. In this paper we report (i) an active RF preparation contains excess a-subunit of eIF-2 and this a-subunit can be phosphorylated by HRI and ATP in the presence of GDP; (ii) RF promotes ternary complex formation by elF-2-[3HJGDP with accompanying GDP displacement; (iii) in the presence of HRI and ATP, RF promotes ternary complex formation by eIF-2-[3HJGDP without accompanying GDP displacement; (iv) in the presence of HRI and ATP, the ternary complex formed using RF is active in Met-tRNAf 40S initiation complex formation; (v) both the ternary complex and the MettRNAf 40S complex formation in the presence of HRI and ATP are completely inhibited by prior incubation of RF with GDP; (vi) upon further fractionation of an active RF fraction, a preparation can be obtained that contains HRI-sensitive CoeIF-2 activity. However, this preparation does not efficiently reverse protein synthesis inhibition in heme-deficient reticulocyte lysates and does not contain excess a-subunit of eIF-2. Based on these observations, we have suggested (a) RF provides the unphosphorylated a-subunit to eIF-2a(P)-GDP and restores eIF-2 activity. This RF activity is inhibited as the asubunit in the RF preparation becomes phosphorylated by HRI and ATP in the presence of GDP; (b) RF contains Co-eIF-2 activity, which has dual functions: (i) stimulation of ternary complex formation by eIF-2 and (i) GDP displacement from eIF-2-GDP during ternary complex formation. In the presence of HRI and ATP, Co-eIF-2 still stimulates ternary complex formation by unphosphorylated eIF-2 but does not displace GDP from eIF-2a(P)-GDP.Heme-regulated protein synthesis inhibitor, HRI, phosphorylates the a-subunit of eukaryotic initiation factor 2 (eIF-2) and inhibits ternary complex (Met-tRNAf eIF-2-GTP) formation. The following mechanism has been proposed for the inhibition of ternary complex formation: A high molecular weight protein factor that we purify from reticulocyte ribosomal salt wash and term Co-eIF-2 (1) [also termed Co-eIF-2C (2), SF (3), eIF-2-RF (4)] is required for ternary complex formation by eIF-2 in the presence of Mg2+. The bulk of eIF-2 is present as eIF-2-GDP (5). In the presence of Mg2+, GDP remains tightly bound to eIF-2 and prevents ternary complex formation. ...