Monitoring Editor: Joan S. Brugge G-protein-mediated signal transduction pathways play an essential role in the developmental program of the simple eukaryotic organism Dictyostelium discoideum. Database searches have yielded 11 G␣-subunits, a single G-subunit, but no G␥-subunits. We report here the purification, cDNA isolation, and functional analysis of a G␥-subunit. Like G, the G␥ appears to be unique and hybridization studies show that G␥ and G are expressed in parallel during development. Species-wide sequence comparisons of G␥-subunits and ␥-like domains of RGS proteins reveal short stretches of highly conserved residues as well as the common CXXL motif at the COOHterminal of G␥s that target G␥s to plasma membrane. Overexpression of a CSVL-deleted G␥ (G␥⌬) in wild-type cells shifts G␥ to the cytosol and selectively impairs certain G-proteinmediated signal transduction pathways. These cells are able to respond to increments in the stimulus, but are unable to sense chemoattractant gradients. They neither move directionally nor recruit PH-domains to their leading edge. Thus, a full complement of membrane-tethered G␥ is required for sensing shallow gradients, but is not essential for responses to increments in extracellular stimuli.