Budding yeast polo kinase Cdc5p localizes to the spindle pole body (SPB) and to the bud-neck and plays multiple roles during M-phase progression. To dissect localization-specific mitotic functions of Cdc5p, we tethered a localization-defective N-terminal kinase domain of Cdc5p (Cdc5p⌬C) to the SPB or to the bud-neck with components specifically localizing to one of these sites and characterized these mutants in a cdc5⌬ background. Characterization of a viable, SPB-localizing, CDC5⌬C-CNM67 mutant revealed that it is defective in timely degradation of Swe1p, a negative regulator of Cdc28p. Loss of BFA1, a negative regulator of mitotic exit, rescued the lethality of a neck-localizing CDC5⌬C-CDC12 or CDC5⌬C-CDC3 mutant but yielded severe defects in cytokinesis. These data suggest that the SPB-associated Cdc5p activity is critical for both mitotic exit and cytokinesis, whereas the bud neck-localized Cdc5p is required for proper Swe1p regulation. Interestingly, a cdc5⌬ bfa1⌬ swe1⌬ triple mutant is viable but grows slowly, whereas cdc5⌬ cells bearing both CDC5⌬C-CNM67 and CDC5⌬C-CDC12 grow well with only a mild cell cycle delay. Thus, SPB-and the bud-neck-localized Cdc5p control most of the critical Cdc5p functions and downregulation of Bfa1p and Swe1p at the respective locations are two critical factors that require Cdc5p.The polo-like protein kinases (Plks) are a conserved subfamily of serine/threonine protein kinases that play pivotal roles in regulating various cellular and biochemical events at multiple stages of M phase. Members of the polo subfamily have been isolated from species as divergent as budding yeast and mammals. Plks are characterized by the presence of a distinct region of homology in the C-terminal noncatalytic domain, termed the polo-box. Studies with the budding yeast polo kinase Cdc5p have shown that the polo-box domain is critical for the localization of Cdc5p to the spindle pole body (SPB) and the daughter side of the bud-neck (48). In addition, the polo-box domain of mammalian polo-like kinase Plk1 was shown to be sufficient for the localization of this enzyme to the centrosomes, kinetochores, and midbody in cultured mammalian cells (20,43). These data indicate that the role of the polo-box domain is conserved in targeting the catalytic activity of the polo kinases to specific subcellular locations.