Heat shock proteins (Hsps) were first identified as proteins whose syn
thesis was enhanced by stresses such as an increase in temperature. Re
cently, several of the major Hsps have been shown to be intimately inv
olved in protein biogenesis through a direct interaction with a wide v
ariety of proteins. As a reflection of this role, these Hsps have been
referred to as molecular chaperones. Hsp70s interact with incompletel
y folded proteins, such as nascent chains on ribosomes and proteins in
the process of translocation from the cytosol into mitochondria and t
he endoplasmic reticulum. Hsp60 also binds to unfolded proteins, preve
nting aggregation and facilitating protein folding. Although less well
defined, other Hsps such as Hsp90 also play important roles in modula
ting the activity of a number of proteins. The function of the proteol
ytic system is intertwined with that of molecular chaperones. Several
components of this system, encoded by heat-inducible genes, are respon
sible for the degradation of abnormal or misfolded proteins. The buddi
ng yeast Saccharomyces cerevisiae has proven very useful in the analys
is of the role of molecular chaperones in protein maturation, transloc
ation, and degradation. In this review, results of experiments are dis
cussed within the context of experiments with other organisms in an at
tempt to describe the current state of understanding of these ubiquito
us and important proteins.