The folding of large, multidomain proteins involves the hierarchical a
ssembly of individual domains. It remains unclear whether the stabilit
y and folding of small, single-domain proteins occurs through a compar
able assembly of small, autonomous folding units. We have investigated
the relationship between two subdomains of the protein T4 lysozyme. T
hermodynamically, T4 lysozyme behaves as a cooperative unit and the un
folding transition fits a two-state model. The structure of the protei
n, however, resembles a dumbbell with two potential subdomains: an N-t
erminal subdomain (residues 13-75), and a C-terminal subdomain (residu
es 76-164 and 1-12). To investigate the effect of uncoupling these two
subdomains within the context of the native protein, we created two c
ircular permutations, both at the subdomain interface (residues 13 and
75). Both variants adopt an active wild-type T4 lysozyme fold. The pr
otein starting with residue 13 is 3 kcal/mol less stable than wild typ
e, whereas the protein beginning at residue 75 is 9 kcal/mol less stab
le, suggesting that the placement of the termini has a major effect on
protein stability while minimally affecting the fold. When isolated a
s protein fragments, the C-terminal subdomain folds into a marginally
stable helical structure, whereas the N-terminal subdomain is predomin
antly unfolded. ANS fluorescence studies indicate that, at low pH, the
C-terminal subdomain adopts a loosely packed acid state. An acid stat
e intermediate is also seen for all of the full-length variants. We pr
opose that this acid state is comprised of an unfolded N-terminal subd
omain and a loosely folded C-terminal subdomain.