One of the proteins identified as being involved in ribosome biogenesis by high-throughput studies, a putative P-loop-type kinase termed Fap7 (YDL166c), was shown to be required for the conversion of 20S pre-rRNA to 18S rRNA. However, the mechanism underlying this function has remained unclear. Here we demonstrate that Fap7 is strictly required for cleavage of the 20S pre-rRNA at site D in the cytoplasm. Genetic depletion of Fap7 causes accumulation of only the 20S pre-rRNA, which could be detected not only in 43S preribosomes but also in 80S-sized complexes. Fap7 is not a structural component of 43S preribosomes but likely transiently interacts with them by directly binding to Rps14, a ribosomal protein that is found near the 3 end of the 18S rRNA. Consistent with an NTPase activity, conserved residues predicted to be required for nucleoside triphosphate (NTP) hydrolysis are essential for Fap7 function in vivo. We propose that Fap7 mediates cleavage of the 20S pre-rRNA at site D by directly interacting with Rps14 and speculate that it is an enzyme that functions as an NTP-dependent molecular switch in 18S rRNA maturation.In eukaryotes, rRNA transcription and ribosome biogenesis occur in a subnuclear compartment called the nucleolus. In this subcompartment, RNA polymerase I transcribes an rRNA precursor (pre-rRNA) that harbors the 18S, 25S/28S, and 5.8S rRNAs and several noncoding internal and external transcribed spacers (ITS and ETS, respectively) ( Fig. 1). The prerRNA is chemically modified and cleaved by endo-and exonucleases to produce the mature rRNAs. This process has been most extensively characterized in the yeast Saccharomyces cerevisiae (for detailed reviews, see references 36 and 46). In this organism, the primary 35S pre-rRNA is cleaved at sites A 0 , A 1 , and A 2 to yield the 20S and 27SA 2 pre-rRNA intermediates. These cleavage steps are mediated by components of the ϳ80S small-subunit (SSU) processome/90S preribosomes (4, 18). The 20S pre-rRNA, packaged into 43S preribosomes, is exported to the cytoplasm, where it is dimethylated by Dim1 and processed at site D to form the mature 18S rRNA and thereby the 40S ribosomal subunit (SSU). The 27SA 2 pre-rRNAs, part of 66S preribosomes, can be processed via two pathways leading to the synthesis of the 5.8S and 25S large-subunit (LSU) rRNAs (Fig. 1). Finally, the 5S rRNA is independently transcribed as a precursor by RNA polymerase III (Fig. 1). Many of the cleavage steps in pre-rRNA processing are believed to be endonucleolytic; thus far, however, the enzymes responsible for most of these cleavages have not been identified. Two well-studied examples are the RNase MRP snoRNP, which cleaves at site A 3 , and Rnt1, an endonuclease responsible for cleavage of the 3Ј ETS (24, 30). One possible candidate for the cleavage at site D in the 20S pre-rRNA is Nob1, a protein that contains a putative PIN domain, which shares structural homology with several exonucleases and flap endonucleases (2,6,8). Consistent with a role as a nuclease, conserved residues within...