The AAA domain, a conserved Walker-type ATPase module, is a feature of memb
ers of the AAA family of proteins(1,2), which are involved in many cellular
processes, including vesicular transport(3-7), organelle biogenesis(8), mi
crotubule rearrangement(9) and protein degradation(10-12), The function of
the AAA domain, however, has not been explained. Membrane-anchored AAA prot
eases of prokaryotic and eukaryotic cells comprise a subfamily of AAA prote
ins(13-15) that have metal-dependent peptidase activity and mediate the deg
radation of non-assembled membrane proteins. Inactivation of an orthologue
of this protease family in humans causes neurodegeneration in hereditary sp
astic paraplegia(16). Here we investigate the AAA domain of the yeast prote
in Yme1, a subunit of the i-AAA protease located in the inner membrane of m
itochondria(17,18). We show that Yme1 senses the folding state of solvent-e
xposed domains and specifically degrades unfolded membrane proteins. Substr
ate recognition and binding are mediated by the amino-terminal region of th
e AAA domain. The purified AAA. domain of Yme1 binds unfolded polypeptides
and suppresses their aggregation. Our results indicate that the AAA domain
of Yme1 has a chaperone-like activity and suggest that the AAA domains of o
ther AAA proteins may have a similar function.