ATP-binding cassette (ABC) transporters belong to a large family of membrane proteins found in all three kingdoms of life. The chemical energy of ATP is used to drive uphill transport of a broad range of solutes across membranes [1][2][3]. ABC transporters have a conserved domain organization consisting of two transmembrane domains (TMDs) and two nucleotide-binding domains (NBDs). The TMDs form a translocation pore, whereas the NBDs catalyze ATP hydrolysis.The ABC half-transporter multidrug resistance like protein 1 (MDL1), composed of a TMD followed by a NBD, is located in the inner mitochondrial membrane (IMM) of Saccharomyces cerevisiae. It has been suggested to be involved in the export of 6-mer to 20-mer peptides, derived from proteolysis of nonassembled inner membrane proteins by the m-AAA (i.e. matrixoriented ATPase associated with a variety of cellular activities) protease [4]. It has been further reported that MDL1 mediates resistance against oxidative stress and can partially complement the function of ABC transporter of mitochondria (ATM) 1 [5]. Deletion of ATM1 in S. cerevisiae results in a severe growth defect because ATM1 is essential for the biogenesis of cytosolic iron-sulfur (Fe-S) proteins [6]. The ATP-binding cassette transporter MDL1 of Saccharomyces cerevisiae has been implicated in mitochondrial quality control, exporting degradation products of misassembled respiratory chain complexes. In the present study, we identified an unusually long leader sequence of 59 amino acids, which targets MDL1 to the inner mitochondrial membrane with its nucleotidebinding domain oriented to the matrix. By contrast, MDL1 lacking this leader sequence is directed into the endoplasmic reticulum membrane with the nucleotide-binding domain facing the cytosol. Remarkably, in both targeting routes, the ATP-binding cassette transporter maintains its intrinsic properties of membrane insertion and assembly, leading to homooligomeric complexes with similar activities in ATP hydrolysis. The physiological consequences of both targeting routes were elucidated in cells lacking the mitochondrial ATP-binding cassette transporter ATM1, which is essential for biogenesis of cytosolic iron-sulfur proteins. The mitochondrial MDL1 complex can complement ATM1 function, whereas the endoplasmic reticulumtargeted version, as well as MDL1 mutants deficient in ATP binding and hydrolysis, cannot overcome the Datm1 growth phenotype.Abbreviations ABC, ATP-binding cassette; ATM, ABC transporter of mitochondria; ER, endoplasmic reticulum; 5-FOA, 5-fluoroorotic acid; IMM, inner mitochondrial membrane; MDL1, multidrug resistance like protein 1; MTS, mitochondrial targeting signal; NBD, nucleotide-binding domain; SC, synthetic complete; TIM, translocase of the inner mitochondrial membrane; TOM, translocase of the outer mitochondrial membrane; TMD, transmembrane domain.