Bypass of Ess1 (Bye1) is a nuclear protein with a domain resembling the central domain in the transcription elongation factor TFIIS. Here we show that Bye1 binds with its TFIIS-like domain (TLD) to RNA polymerase (Pol) II, and report crystal structures of the Bye1 TLD bound to Pol II and three different Pol II-nucleic acid complexes. Like TFIIS, Bye1 binds with its TLD to the Pol II jaw and funnel. In contrast to TFIIS, however, it neither alters the conformation nor the in vitro functions of Pol II. In vivo, Bye1 is recruited to chromatin via its TLD and occupies the 5′-region of active genes. A plant homeo domain (PHD) in Bye1 binds histone H3 tails with trimethylated lysine 4, and this interaction is enhanced by the presence of neighboring posttranslational modifications (PTMs) that mark active transcription and conversely is impaired by repressive PTMs. We identify putative human homologs of Bye1, the proteins PHD finger protein 3 and death-inducer obliterator, which are both implicated in cancer. These results establish Bye1 as the founding member of a unique family of chromatin transcription factors that link histones with active PTMs to transcribing Pol II.gene transcription | chromatin modification F or transcription of eukaryotic protein-coding genes, RNA polymerase (Pol) II associates transiently with dozens of transcription factors. Different Pol II-associated factors are required for transcription initiation, RNA chain elongation through chromatin, pre-mRNA 5′-capping, splicing, 3′-RNA processing of the nascent transcript, and transcription termination (1-3). To understand how these factors cooperate with Pol II and achieve their functions, structural information on Pol II in complex with transcription factors is required. Thus far, X-ray crystallographic structural information on such complexes is limited to two transcription factors: the initiation factor TFIIB (4-7), and the elongation factor TFIIS (8-11). TFIIS contains three domains, a mobile N-terminal domain, a central domain that binds directly to the Pol II jaw and funnel domains, and a C-terminal zinc ribbon domain that inserts into the polymerase pore (also called the secondary channel) and reaches the Pol II active site (9), to stimulate cleavage of backtracked RNA during transcriptional proofreading and escape from arrest (12).In the yeast Saccharomyces cerevisiae, there is only a single protein that contains a domain that is distantly homologous to the central, Pol II-associated domain of TFIIS. This protein, bypass of Ess1 (Bye1), has been identified as a multicopy suppressor of Ess1 (13), a peptidyl-prolyl cis-trans isomerase involved in proline isomerization of the C-terminal domain (CTD) of Pol II (14, 15). In Bye1, the central TFIIS-like domain (TLD, residues 232-365) is flanked by an N-terminal plant homeo domain (PHD) (residues 74-134) and a C-terminal Spen paralogue and orthologue C-terminal (SPOC) domain (residues 447-547; Fig. 1A). PHD domains are mostly found in proteins involved in chromatinmediated gene regulation (16). Con...